The original documents are located in Box 13, folder “2/25-26/75 - Miami, Florida (1)” of the Sheila Weidenfeld Files at the Gerald R. Ford Presidential Library.

Copyright Notice The copyright law of the United States (Title 17, United States Code) governs the making of photocopies or other reproductions of copyrighted material. Gerald R. Ford donated to the United States of America his copyrights in all of his unpublished writings in National Archives collections. Works prepared by U.S. Government employees as part of their official duties are in the public domain. The copyrights to materials written by other individuals or organizations are presumed to remain with them. If you think any of the information displayed in the PDF is subject to a valid copyright claim, please contact the Gerald R. Ford Presidential Library. Digitized from Box 13 of the Sheila Weidenfeld Files at the Gerald R. Ford Presidential Library

DIPLOMAT HOTEL ROOM ASSIGNMENTS

NAME ROOM NUMBER

ADAMS, Larry 834 BARNUM, John 4100 BAROODY, Bill 3400 BARRETT, Bob 3807 BEJ'.'.TC:ON, Paul 803 BURKE, Cong. 650 CARROCCIO, Tom 735 CAVANEY, Red 3821 CAVANAUGH, Jim 4020 CHILES, Joy 4107 CRAWFORD, H. R. 3404 DALE, Billy 1404 DEBACA, Fernando 3504 DeCAm, Tom 3618 DUVAL, Mike 3723 FALK, Jim 3814 FISHER, Mary 3318 GALLAGHER, Bob 523 GOODWIN, Bob 3902 HARTMANN, Bob 3806 HOWE, Nancy 3810 JACKSON, Ron 423 JONES, Wilbur 3811 KELLY, Cong. 651 KENNERLY, David 4223 LAWSON, General 833 L UKASH, William 3808 MACBETH, Elizabeth 3818 MEAD, Bob 3816 MOR TON, Judy 3820 MORTON, Rogers 3223 NESSEN, Ron 4104 NOEL, Pappy 524 0 1 DONNELL, Terry 3802 OLDENBURG, Herb 615 ROSENBERGER, Eric 722 RUMSFELD, Don 3801 SEIDMAN, Bill 3500 SORUM, Pete 3811 SPONEMAN, Steve 3215 STEWARD 3805 THEIS, Paul 3812 -2-

NAME ROOM NUMBER

WARFIELD, Bill 3415 WASHBURN, Lang 4000 WEIDENFELD, Sheila 4109 WHITE, Margita 3417 VALET 3805 VENNERS, Peggy 3819 VICKERMAN, John 3717

WHITE HOUSE CONFERENCE 3704 WHITE HOUSE STAFF OFFICE 3900 VIP/STAFF LOUNGE 3823 WELCOME TO BROWARD COUNTY

Please use a White House phone or dial 920-8957 to let our Switch board know where you are going and when you expect to be back.

BAGGAGE CALL - WEDNESDAY, FEBRUARY 26TH

1) Please place all Air Force One baggage unlocked outside your room by 10:00 am.

2) Please place all baggage for Inverrary Hills in the VIP/ Staff Lounge (Room 3823) by 10:00 am.

3) There will be a 7:00 pm baggage call at the Senior Staff Residence of Inverrary Hills (3435 Spring Bluffs Place).

STAFF OFFICE

There is a Staff Office available in Room 3900. There is one IBM Executive typewriter, 2 IBM Standard typewriters and a Xerox 4500 for your use in the Staff Office.

VIP/STAFF LOUNGE

A VIP/Staff Lounge is available in Room 3823. There will be continuous beverage service, snacks on arrival and a dinner buffet starting at 8:00 pm. A continental breakfast will begin at 6:00 am Wednesday morning.

MOTOR POOL

A limited number of cars are available. Call the Staff Office and ask for the motor pool dispatcher. A driver will meet you in the Staff Lounge to escort you to your car.

VALET

Complete Valet service is available during your stay by dialing hotel extension 14 or by going through the White House Switchboard •. -2-

BARBER SHOP AND BEAUTY SALON

A Barber Shop is available in the Lower Lobby from 8:30 am to 5:00 pm.

A Beauty Salon is also available in the Lower Lobby from 9:00 am to 4:30 pm.

DRUGSTORE

A Drugstore is available in the Lower Lobby from 8:00 am to 10:00 P.M.

TENNIS COURTS

There are 19 asphalt Tennis Courts available until 11:00 pm for your use for a nominal fee. Reservations for court time can be obtained by dialing 62904 on a house phone or through the White House Switchboard.

DIPLOMAT HOTEL RESTAURANTS & CLUBS

Cafe Crystal - Peggy Lee is currently appearing at the Cafe Crystal (in the lobby area) in a dinner show at 10:00 pm. Reservations and coat and tie are both needed. Cover and minimum in effect.

The Celebrity Room is a small gourmet French Restaurant located in the lobby area. Reservations coat and tie are necessary. Expensive.

The Bon Appitite Restaurant just outside the lobby area is informal and available for breakfast and lunch only.

The Tack Room is a bar and night club located in the lobby area.

The Demi-Tasse is a coffee shop open from 7:00 am to 2:00 am located in the Lower Lobby. -3-

The Dinghy is located in the Marina Building of the Diplomat Hotel. Seafood is served along with a salad bar. Reasonably priced. In conjunction with the Dinghy is located the Speak Easy. Entertaimnent and continuous dancing from 9:45 pm to 2:00 am.

The Via Veneto,which is located in the Golf and Racquet Club, serves Italian food and is open from 6:00 pm to 11:00 pm.

HILLS OF INVERRARY

Available for your use is a pool adjacent to the Presidential Residence.

Food and beverage will be available at the Senior Staff Residence (3435 Spring Bluffs Place) throughout the day and evening.

Motor pool cars will be available for your use by contacting the Staff Office at Inverrary.

_, WPBT/CHANNEL 2/ PUBLIC TELEVISION/ P.O. BOX 610001/NORTH MIAMI, FLORIDA 331611 (305) 949-8321

(Contact: Sue Wainwright)

)

February 24, 1975

Ms. Sheila Rabb Weidenfeld Press Secretary to Mrs. Gerald Ford c/o Diplomat Hotel Hollywood By The Sea, Florida

Dear Ms. Weidenfeld:

Enclosed, you will find a copy of a letter to Mrs. Gerald Ford.

I am most anxious to tape a program with the First Lady, hence the duplication to correspondence you may have already received at the White House.

Any assistance you can provide in making JEANNE WOLF WITH BETTY FORD a reality would most certainly be appreciated.

Cordially, J:~~~ Producer/Host JEANNE WOLF WITH • • •

JW/smw Enclosures . · WPBT/CHANNEL 2/ PUBLIC TELEVISION.' P.O. BOX 610001iNORTH MIAMI, F.LORIDA 33161; (305) 949-8321

(Contact: Sue Wainwright)

February 24, 1975

Mrs. Gerald R. Ford c/o Diplomat Hotel Hollywood By The Sea, Florida

Dear Mrs. Ford: All of South Florida is delighted to learn of the President's visit and we are especially pleased that you could join him. As hostess of a weekly interview program based at WPBT, South Florida's Public Television station (a program airing nationally on the PBS Network) , I would love to have the opportunity of talking with you during your stay. Our conversation would be a half hour, video taped portrait of you - completely free from commercials or other interruptions. We would, of course, make arrangements to tape around your busy schedule. Some.of my guests have been: Gov. & Mrs. Reubin Askew, Carl Rowan, Julian Bond, Dan Rather, James Michener, Jackie Gleason, Lily Tomlin - just to name a few. The entire PBS audience would take much pleasure in a personal view of you. Your appearance would not only be a highly appreciated public service, but it would help to give Public Television across the country a much needed boost. I look forward to hearing from you.

Cordially, ~~1~~ Producer/Host JEANNE WOLF WITH •

JW/smw Enclosure WPBT/CHANNEL 2/ PUBLIC TELEVISION i P 0 BOX 610001/NORTH MIAMI. FLORIDA 33161 (305) 949-8321

(Contact Sue Wa1nwr1ght)

)

INTERVIEWS WITH A FRESH PERSPECTIVE

The art of conversation receives a refreshing boost each week on JEANNE WOLF WITH . • •

In a series of in-depth people portraits, producer/host Jeanne Wolf helps the television viewer rediscover how totally fascinating well-known personalities can be when they reveal themselves in candid conversation.

From her home base at WPBT/Channel 2, Public Television for South Florida, Jeanne Wolf has mastered the art of interviewing in a style that creates a genuine rapport with each famous guest. Her style is a successful combination of disarmingly direct approach and thorough subject knowledge.

Jeanne Wolf is equally at home with national figures from sports to show biz. Some of the subjects for half-hour conversations have been:

DAN RATHER CESAR CHAVEZ DON SHULA JACKIE GLEASON JAMES MICHENER GORE VIDAL JULIAN BOND CHARLIE CALLAS CARL ROWAN ART BUCHWALD PHYLLIS DILLER LILY TOMLIN DR. JOYCE BROTHERS FLORYNCE KENNEDY MILTON BERLE KATHARINE GRAHAM JAMES R. HOFFA JIM BISHOP GEN. DANIEL JAMES, JR. DOUGLAS FAIRBANKS, JR. BILL BLASS FLORENCE HENDERSON DR. THEODORE RUBIN POLLY BERGEN RUDI GERNREICH ESTELLE PARSONS SAL MINEO SHEILAH GRAHAM JULIE NEWMAR ROBERT CONRAD ANITA BRYANT RAYMOND DIRKS ROBERTA PETERS JOAN BENNETT MAMIE VAN DOREN FIFI D'ORSAY GEORGE MASTERS BUFFALO BOB SMITH GOV. REUBIN ASKEW DR. ROBERT ATKINS DR.IRWIN STILLMAN NEHEMIAH PERSOFF THEODORE BIKEL TENNESSEE WILLIAMS DAVID SUSSKIND BOBBY RIGGS RICHARD CHAMBERLAIN GEORGE ABBOTT TOM McGUANE ARTHUR FIEDLER PETER FONDA

JEANNE WOLF WITH • • • has garnered strong ratings in Miami and enthusiastic response from a national audience as the first network series chosen by PBS from the State of Florida. • PUBLIC TELE.VISIOn -WPBI

Ms. Sheila Rabb Weidenfeld Press Secretary to Mrs. Gerald Ford c/o Diplomat Hotel Hollywood By The Sea, Florida

MAILING ADDRESS: P.O. BOX 1 /NORTH MIAMI. FLORIDA 33161 WPBT/CHANNEL 2/ PUBLIC TELEVISION r P.O. BOX 610001 /NORTH MIAMI, FLORIDA 33161; (305) 949-8321

(Contact: Sue Wainwright)

) February 24, 1975

Mrs. Gerald R. Ford c/o Diplomat Hotel Hollywood By The Sea, Florida

Dear Mrs. Ford: All of South Florida is delighted to learn of the President's visit and we are especially pleased that you could join him. As hostess of a weekly interview program based at WPBT, South Florida's Public Television station (a program airing nationally on the PBS Network) , I would love to have the opportunity of talking with you during your stay. Our conversation would be a half hour, video taped portrait of you - completely free from commercials or other interruptions. We would, of course, make arrangements to tape around your busy schedule. Some of my guests have been: Gov. & Mrs. Reubin Askew, Carl Rowan, Julian Bond, Dan Rather, James Michener, Jackie Gleason, Lily Tomlin - just to name a few. The entire PBS audience would take much pleasure in a personal view of you. Your appearance would not only be a highly appreciated public service, but it would help to give Public Television across the country a much needed boost. I look forward to hearing from you.

Cordially, ~~';J~ Producer/Host JEANNE WOLF WITH •

JW/smw Enclosure WPBT/CHANNEL 2/ PUBLIC TELEVISION 1 P 0 BOX 610001/NORTH MIAMI. FLORIDA 33161 (305) 949-8321

(Contact Sue Wainwright)

)

INTERVIEWS WITH A FRESH PERSPECTIVE

The art of conversation receives a refreshing boost each week on JEANNE WOLF WITH • . •

In a series of in-depth people portraits, producer/host Jeanne Wolf helps the television viewer rediscover how totally fascinating well-known personalities can be when they reveal themselves in candid conversation.

From her home base at WPBT/Channel 2, Public Television for South Florida, Jeanne Wolf has mastered the art of interviewing in a style that creates a genuine rapport with each famous guest. Her style is a successful combination of disarmingly direct approach and thorough subject knowledge.

Jeanne Wolf is equally at home with national figures from sports to show biz. Some of the subjects for half-hour conversations have been:

DAN RATHER CESAR CHAVEZ DON SHULA JACKIE GLEASON JAMES MICHENER GORE VIDAL JULIAN BOND CHARLIE CALLAS CARL ROWAN ART BUCHWALD PHYLLIS DILLER LILY TOMLIN DR. JOYCE BROTHERS FLORYNCE KENNEDY MILTON BERLE KATHARINE GRAHAM JAMES R. HOFFA JIM BISHOP GEN. DANIEL JAMES, JR. DOUGLAS FAIRBANKS, JR. BILL BLASS FLORENCE HENDERSON DR. THEODORE RUBIN POLLY BERGEN RUDI GERNREICH ESTELLE PARSONS SAL MINEO SHEILAH GRAHAM JULIE NEWMAR ROBERT CONRAD ANITA BRYANT RAYMOND DIRKS ROBERTA PETERS JOAN BENNETT MAMIE VAN DOREN FIFI D 'ORSAY GEORGE MASTERS BUFFALO BOB SMITH GOV. REUBIN ASKEW DR. ROBERT ATKINS DR.IRWIN STILLMAN NEHEMIAH PERSOFF THEODORE BIKEL TENNESSEE WILLIAMS DAVID SUSSKIND BOBBY RIGGS RICHARD CHAMBERLAIN GEORGE ABBOTT TOM McGUANE ARTHUR FIEDLER PETER FONDA

JEANNE WOLF WITH . • • has garnered strong ratings in Miami and enthusiastic response from a national audience as the first network series chosen by PBS from the State of Florida. • PUBLIC TELEVISIOn -WPBI

MRS. GERALD FORD c/o Diplomat Hotel Hollywood by the Sea, Florida

MAILING ADDRESS: P.O. BOX 1 / NORTH MIAMI. FLORIDA 33161 - 22 - #147-2/19

Then I wanted to tell you that Friday evening the President is going to stop in at the annual meeting of the Reserve Officers Association of the United States. He will receive the Reserve Officers Association Man of the Year Award. This will be at the Washington Hilton. The President will have some remarks and we will have them out in advance.

Q What time is that, Ron?

MR. NESSEN: I don't have the exact details but we will before Friday gets here.

Then one other added ~vent to the Miami trip that I didn't have yesterday. I keep talking about a Miami trip; it is actually Hollywood, Florida, which is north of Miami.

The President will have a breakfast with the news executives from the Florida and the Southeastern region on Wednesday morning. That is the only other event.

Everything will take place at the Diplomat Hotel in Florida. The news conference will be at 11 o'clock on Wednesday as I mentioned.

We talked about the sign up list and putting a little X next to your name if you want to be in the drawing for a question at the news conference.

One other thing about the Florida trip.

Q Any decision on the golf tournament?

MR. NESSEN: Nothing firm on the golf game yet.

Q Ron, the tournament director down there says that they were informed on Monday that the President was definitely coming.

MR. NESSEN: Well, one of the publicity agents down there called me a couple weeks ago and wanted to announce that the President was coming and I said he better not because he has not decided whether to come or not. I suppose they want to attract a crowd for their tournament, but there is no decision made on whether he is going to do it.

Q What is holding up a decision? Doesn't he want to have this trip characterized as a golf holiday or something?

MORE #147 """ -- ···

- 2 - #149-2/21

At 9:10 p.m. this evening, the President will depart the South Grounds by motorcade for the Washington Hilton Hotel, where, at about 9:30, he will receive the Reserve Officers Association's highest award, the "Minuteman of the Year Award." The President is the 18th recipient of this award, and he is the first President to receive it.

Senator Stennis will make the presentation. The President will make some remarks, and we will have the text available after the briefing, which is embargoed for release at 6:00 p.m. tonight. There will be open press coverage of the award presentation and of the President's remarks. The travel pool, which we have posted, should assemble here by 9:00 p.m. CBS is the pool network.

Q Jack, without sounding at all critical, why a 6:00 p.m. embargo on the text? It seems like a good idea, but isn't it different than you usually do?

MR. HUSHEN: No. I think, whenever possible, we will be using an a.m. or p.m. release time. Q But this is the first time you have done that on a Presidential speech.

MR. HUSHEN: No, it is at least the second. Q The budget was the first, right? (Laughter.)

Q What are you going to do, put it out at 3 o'clock in New York? That is the reverse of what happened the last time.

MR. HUSHEN: No. Q You say we are going to get it right now? MR. HUSHEN: After the briefing.

We have one personnel announcement for you today. I think you already have the paper on that. The President announces his intention to nominate Wiley T. Buchanan, Jr., of the District of Columbia,to be Ambassador to Austria. He will succeed John P. Humes, who is resigning. Mr. Buchanan is presently engaged in the private investment business. He was Chief of Protocol of the United States, with rank of Ambassador, from 1957 to 1961, after serving as Ambassador to Luxembourg.

Let me just give you some of the additional details on our trip to Hollywood, Florida. You should have your bag­ gage to Room 87 of the EOB by 10:00 a.m., Tuesday. The press bus. will depart the Southwest Gate for Andrews at 11:30 a.m. Check-in time at Andrews with baggage is 11:30 a.m.

MORE #149 -

- 3 - #149-2/21 Q What was the press bus departure? MR. HUSHEN: It will depart from the Southwest Gate at 11:30 a.m., and for those who are going directly to Andrews with your baggage, you should be there by 11:30 a.m.

The press plane departs Andrews at 12:15 p.m. for Fort Lauderdale-Hollywood International Airport. You will arrive there at approximately 2:30 p.m., Eastern Daylight Time. The President will depart from the White House at 12:55 p.m., from Andrews at 2:30 p.m. and will arrive at Fort Lauderdale ·at 3:30 p.m.

Q Departs Andrews at 1:30 p.m., you mean?

MR. HUSHEN: It must be 1:30 p.m. We have got 2:30 p.m. here. It leaves Andrews at 1:15 p.m.

Q It does not take 35 minutes to get there.

Q Do .that over again.

MR. HUSHEN: A slight correction Q When does it leave the White House? MR. HUSHEN: 12:55 p.m. is the scheduled departure from the White House. 1:15 p.m. is the scheduled departure from Andrews. 3:30 p.m. is the scheduled arrival at Fort Lauderdale. Q What do you mean, Fort Lauderdale? MR. HUSHEN: Fort Lauderdale International Airport. Q Any particular spot there, any particular terminal?

MR. HUSHEN: I don't have that yet. Q Is it going to land at the Hollywood International Airport?

MR. HUSHEN: It is the Fort Lauderdale-Hollywood International Airport. It is the same one where the press plane will land.

Q And then? Will he take a helicopter? MR. HUSHEN: I don•t have any more details on that particular aspect of it, except to say that I think you know the President, White House staff and the press corps all will be staying at the Diplomat Hotel in Hollywood, and the phone number there is Area Code 305-923-8111.

MORE #149 --

- 4 - #149-2/21 We expect to have the bibles out Monday afternoon, which will give you the rest of the details of it. I just wanted you to have this information so you could make your plans.

Q Can you say whether there is a motorcade or a helicopter? MR. HUSHEN: No.

Q Have you announced the nayora' dinner?

MR. HUSHEN: I am about to. On Tuesday evening, after his arrival, the President will host a working dinner for the Mayors of Fort Lauderdale, Miami and Mayors from eight States in the Southeastern region, which are Florida, Alabama, Georgia, Louisiana Q Mayors of these States? MR. HUSHEN: Mayors.

Q Mayors of various cities in these States, and they are what?

MR. HUSHEN: Let me go through the list of the States.

-- Florida, Alabama, Georgia, Louisiana, Mississippi, North Carolina, South Carolina and Tennessee. The~e mayors represent a bipartisan group from both large and small cities.

MORE

#149 i

WHITE HOUSE CONFERENCE ON DOMESTIC AND ECONOMIC AFFAIRS

I

SOUTH FLORIDA February 25, 1 975 CO-SPONSORING ORGANIZATIONS AMERICAN ASSOCIATION OF RETIRED PERSONS AND NATIONAL RETIRED TEACHERS ASSOCIATION FLORIDA COUNCIL OF 100 GREATER FT. LAUDERDALE CHAMBER OF COMMERCE GREATER HOLLYWOOD CHAMBER OF COMMERCE SPONSORED BY LATIN CHAMBER OF COMMERCE LATIN AMERICAN CHAMBER OF COMMERCE OF HIALEAH THE WHITE HOUSE OFFICE OF PUBLIC LIAISON LEAGUE OF WOMEN VOTERS OF METROPOLITAN DADE COUNTY MIAMI BEACH CHAMBER OF COMMERCE THE GREATER MIAMI CHAMBER OF COMMERCE UNITED WAY OF DADE COUNTY URBAN LEAGUE OF GREATER MIAMI

;; I - , I rt'ifT , hat #' 11 . . tr FRIDAY, FEBRUARY 7, 1975 ... WASHINGTON, D.C • Volume 40 • Number 27 •• PART II 1K DEPARTMENT ·- OF HOUSING AND URBAN DEVELOPMENT

Office oF Assistant Secretary for Community Development • COMMUNITY DEVELOPMENT BLOCK GRANTS

Applications and Criteria

5954 RULES AND REGULATIONS RULES AND REGULATIONS 5955 plication, whichever is earlier, submit a mentation establishing the basis for criteria listed in this subsection. Area velopment Act of 1968), and reflected in respect to activities undertaken with management, including the ft::, ncial and performance report as described in grants under this section shall be sup­ omces of HUD are authorized at their a current new community development funds under this Part. physical progress reports required by § 570.906(b), and shall meet the require­ plied by applicants at the request of the discretion (but not required) to set max­ plan (2) provisions of §§ 570.911, 570.912, and amination by the public. (2) shall comply with the application tionary balance available in that year to develoPer and the United States, as the or (3). no new environmental review or 570.913 shall apply, except that the pro­ a given metropolitan area or to the non­ clearances will be required by virtue of visions of § 570.912, dealing with secur­ § 570.401 Urgent needs fund. requirements outlined in § 570.303. Appli­ same may be revised and amended from cants under 'criteria (1) and C3) shall metropolitan portion of a State. A judg­ time to time) . any such activity's proposed funding un­ ing compliance through State governors, (a) Eligible applicants. Eligible appli­ submit documentation, in a manner pre­ mental factor which may be applied by (b) Eligible Applicants. States, and der this part if the activity is a part of a shall not apply t.o private developers, or cants are States, and units of general scribed by HUD, jbstifying and docu­ each Area omce is an estimate of the units of general local government which previously approved project for which prospective grantees controlled by private local government as defined in§ 570.3Cv>. menting the urgent need for funds under capacity of the applicant to complete the meet the definition contained in § 570.3 environmental review clearances have developers. For the puroose of this section, the sec­ this section, and shall provide the certi­ :Proposed activities within the estimated (V) may apply under this subsection for been completed, which clearances ade­ § 570.404 Areawide projects [Reserved] ond sentence in§ 570.3(v) includes those fications required by § 570.303 Ce) (1), cost. grants made on the basis of the provi­ quately covered such activity, and for entities described in§ 570.403Cb) Cl), (2) C3), (4), <5>, (6), and (8). Cc) Application requirements. Appli­ sions of this section. For the purpose of which circumstances, including the § 570.405 Guam, the Virgin Islands, and (3). cants for general purpose funds for this section, the seoond sentence in availability of additional data or ad­ American Samoa, and the Trust Ter· § 570.402 General purpose funds for ritory of the Pacific Islands. Cb) Criteria for Selection. The Secre­ metropolitan and nonmetropolitan areas § 570.3 Eligible applicants. Eligible appU­ Cd) Waiver of Application require­ thority to act as a developer of a new review is required, environmental review American Samoa, and the Trust Terri­ program and to provide for urgent com­ cants are States, and \lnlts of general ments. The provisions of § 570.304 shall' community. shall be conducted by HUD pursuant to tory of the PacHlc Islands. munity development needs which cannot local government as defined in § 570.3 Cv>, also apply to applications under this (2) Any community association (in­ HUD Handbook 1390.1. Cb) Criteria for funding. Applicants be met through the allocation provisions excluding metroPolitan cities, urban section. cluding any homes association) , or other cm For activities proposed by an ap­ may submit applications for discretion­ of § 570.102, § 570.103, and § 570.104(c), counties and units of general local gov­ Ce) Applications submitted by States. similar nonprofit organization estab­ plicant eligible under§ 570.403Cb>, other ary grants for the full range of eligible giving priority to the following: ernment which are included in urban States (including the Commonwealth of lished in a new community under cove­ than under § 570.403 Cb> (2) or (3) , en­ activities described in § 570.200. The Sec­ Cl) The analysis performed by the unit counties as described in § 570.105Cb) (3) Puerto Rico) may apply for general pur­ nants approved by the Secretary in con­ vironmental reviews shall be oonducted retary will estabilsh for each fiscal year of general local g0vernment Cand con­ cm and (ill) • For the purpose of this pose funds for metropolitan and non­ nection with approved new community by the applicant pursuant to 24 CFR an amount for which each eligible appli­ curred in l>y HUD) of its ongoing projects section, the second sentence in§ 570.3(v) metropolitan areas to carry out eligible development projects, or any community Part 58, or, if appllcable, by HUD in ac­ cant may apply. For Fiscal Year 1975, the or program undertaken pursuant to Title includes those entitles described in§ 570.- activities in metrop011tan and non­ authority established under st.ate law for cordance with § 570.603. following shall apply: I of the Housing Act of 1949 indicates 403(b) (1), (2) and (3). metropolitan arell.', respectively. similar purposes, or any of the foregoing (5) Clearinghouse review. Applicants C1) Guam and the Virgin Islands shall (1) that the entitlement amount is: (1) In­ (b) Criteria for selection. In selecting Separate applications are required must comply with the procedures set each receive their hold-harmless amount for nonmetropoutan areas and for each organizations otherwise approved by the sufficient, over a three-year period be­ among applications, priority will be ex­ Secretary which is legally and adminis­ forth in OMB Circular A-95 (requiring as calculated pursuant to § 570.103Cc>. ginning January 1, 1975, to complete the tended to those applications showing the separate metropolitan area for which a tratively qualified to carry to successful review by a clearinghouse> only where Guam and the Virgin Islands may also program or project plan as approved by following conditions, and proposing ac­ State seeks funds. completion those projects for which the proposed Title I funded activities apply for funds to cover urgent needs not HUD; or in any one of those three tivities which directly or indirectly relate <2> The geographical area to be cov­ have not previously been the subject of met by the hold-harmless amounts. cm ered by the application shall be the juris­ grant assistance is sought by the years the entitlement amount will be in­ to these conditions: applicant. clearinghouse review. C2> The Secretary shall establish a sumcient to maintain the progress Cl) Extent of substandard housing diction of the unit or units of general C6> Performance report. Progress in funding level for American Samoa and local government in which the proposed <3> A private new community devel­ schedules adopted locally for achieve­ conditions determined as follows: oper or any subsidiary thereof organized execution activities funded under the Act the Trust Territory of the PacHlc Islands, ment of the program and the inability to activity or activities are to be located or shall be reported to NCA as a part of the taking into account their needs and their (i) for metropolitan areas, the prooor­ carried out. This policy pertains par­ in a form satisfactory to the Secretary: maintain stroh progress will seriously tion and extent of overcrowded housing Provided, That a request has been made quarterly and annual reporting and re­ local administrative capacity. and adversely affect the Federal interest ticularly to the community development Cc) Application requirements. Appli­ as defined in § 570~3 m and expressed as a plan summary, as described in § 570.303 to an appropriate unit of general local view procedures. in the project or program. percentage of the total housing units in government or a non-profit organization Cd) Review and approval of applica­ cants shall meet the application require­ Ca) , and the housing assistance plan, as ments in § 570.303. (2) A unit of general local government the unit of general local government; and described in§ 570.303Cc). The State ap­ to apply for and serve as grantee for the tions. All applications for grants to assist partidpated in the planned variations cm for nonmetropolitan areas, the plication shall indicate that the housing direct benefit of the new community, new community development projects § 570.406 Innovative projects. demonstration assisted under the provi­ pursuant to this section shall be sub­ proportion and extent of housing units assistance plan has been adopted by the and such request has been denied, or in Eligible applicants. Eligible appli­ sions of the Demonstration Cities and lacking plumbing as published by the unit or units of general local government. the judgment of the New Communities mitted to NCA through the appropriate HUD Area omce. cants are States. and units of general Metropolitan Development Act of 1966 United States Bureau of the Census for (3) A state may not apply for activi­ Admlnlstration CNCA) of HUD, no ac­ and will suffer a significant decrease in ceptable response has been received CH Scope of review. NCA will review local government as defined in § 570.3 1970 for rural areas and expressed as a ties to be located in or carried out in (V). For the purpose of this section, the the level of ongoing activities funded percentage of the total housing units in within a reasonable period of time. the application. based uoon data and in­ under the planned variations demonstra­ metropolitan cities, urban counties or formation supplied by the developer of second sentence in § 570.3Cv> includes the unit of general local government. units of general local government which Cc) AppHcatio?i Requirements-Cl> those entities described in § 570.403(b) tion. General. The requirements of this para­ the new community project and oth,er (2) The proportion and e~J?.t of are included 1n urban counties, unless in'de})endent reviews conducted by NCA Cl), (2) and C3). · (3) A state or unit of general local poverty as defined in § 570.3(j) and ex­ such funds have been reallocated in ac­ graph shall be applicable only for the Cb) Criteria for selection. (1) Deftni­ government, as a result of cost increases geographic area within the new commu­ staff or others at NCA request, to deter­ pressed as a percentage of the total cordance with the provisions of § 570.107. mine pertinent facts and goals and their tion. An innovative community develop­ due to circumstances beyond its control, population for the unit of general local (4) A State may apply for activities nity. The requirements set forth in this ment project is one which encompasses has been unable to complete an ongoing paragraph are designed to supplement consistency with information contained government. · to be carried out pursuant to State au­ in the Project Agreement, Dt:velopment a concept, system, or procedure that Is project assisted under one or more of the application procedures and approval re­ unique, advances the state of the com­ following terminated categorical pro­ <3> An extraordinarily high rate of thority or pursuant to an agreement with Plan, and other documents submitted growth or a severe and rapid decline in one or more units of general local gov­ quirements of the new communities pro­ munity development art and has the Po­ grams: Ci) Water and sewer facilities gram under which applicants. will have by the developer or obtained by NCA in population and economic activity, either ernment. the project review process. The review tential for transferability. Where a under section 702 of the Housing and already provided substantial information proposed project 1s one which has been Urban Development Act of 1965: one of these conditions resulting Pri· (f) Reallocation of funds. When funds will include application of the selection cm marlly from the impact of national policy are reallocated in accordance with the to the Secretary. criterion in paragraph Cd) (2) of this demonstrated or is in use elsewhere, the neighborhood facilities under section 703 <2> Activities Program. The applica­ applicant will be expected to show the of the Housing and Urban Development decisions or direct Federal program de­ provisions of § 570.107, the policies and section. cisions, and where the progtam is de­ criteria of this section shall apply ex­ tion shall include a brief description of key variables of the project within the Act of 1966; Cill) open-space land under the activities and costs to be funded from C2) Criterion for selection. The cri­ applicant's jurisdiction which will be sig­ Title VII of the Housing Act of 1961; and signed to offset or mitigate the effects ot cept that metropolitan cities, urban terion to be used in selecting among ap­ sudden spurts or declines in growth. counties and units of general local gov­ the grants for the program year. The nificantly different from previous proj­ the Secretary's analysis of the financial application shall identify separately any plications and activities is whether the ects or that the circumstances and C4) Conditions which represent an ernment which are included in urban grants are necessary to achieve new com­ capacity of the unit of general local gov­ counties shall be eligible applicants for activities not previously submitted to and environment for its adaptation are dif­ ernment indicates a lack of available re­ imminent threat to public health or approved by NCA. munity objectives. ferent. In general, a project will not be safety. reallocated funds. In Fiscal Year 1975, sources locally or otherwise to finance funds will be reallocated as soon as prac­ approved by the New Communities Ad­ Grant administration. The pro­ considered as meeting innovative cri­ completion of the project and the Federal Additional priority may be extended ticable after May 15, 1975. ministration CNCA> of the Department of visions of Subpart F, Grant Adminis­ teria if it does not potentially advance investment in the project as of Janu­ where there are joint and voluntary co­ Housing and Urban Devel9pment as part tration, shall be applicable to applicants, the state of technology. ary 1, 1975 warrants the incremental operation agreements between States and § 570.403 New communities. of Title IV or Title VII documentation. except that private developers shall not (2) Selection priorities. Each year HUD Federal assistance required to compl~e units of general local government or two Ca> General. This Section covers The estimated costs and general loca­ be required to comply with the competi­ may establish areas of national signHl­ the project. or more units of general local govern­ grants made in behalf of activities and tion of these latter activities are to be tive bidding requirements of subsections cance which will be given priority in the (c) Application requirements. AppU­ ment and the activities are designed to projects to be undertaken in direct sup­ shown. 3c (5), qn and (8) of Attachment 0, FMC review of appUcation for funds under cations for funds to meet urgent com­ implement housing and community de­ port of a new community , <4> 1f applicable, (5) and (6) with within the framework of NCA project to make local government service more

FEDERAL REGISTER, VOL 40, NO. 27-FRIDAY, FEBRUARY 7, 1975 FEDERAL REGISTER, VOL. 40, NO. 27-FRIOAY, FEBRUARY 7, 1975 5957 RULES AND REGULATIONS 5956 RULES AND REGULATIONS significant decrease in the anticipated amount of funds approved by HUD for eJfecttve, more efficient and less costly, ditlon, 'the applicant must certify that !evelB of funding available for discre­ the threat of a major disaster, or (2) in applicable programs in such governm~­ tionary grants in metropalitan areas in and which are designed t.o mitigate the citizens llkely to be affected by the proj­ the determination of a Federal agency tal unit during the fiscal years Imme - effects of 1n1lat1on. ect, parttcularly low and moderate in­ accordance with § 570.104Cc> U> · requires disaster or emergency assist­ ately preceding and immediately follow­ Appltcation Ap?ll­ (ii) Communttu development energ11 come persons, have been provided an requir~nts. ance Pllnluant t.o the sta.tut.ory author- · ing the base period of Fiscal Yea.rs 1968 cants shall meet all application requtre­ conservation. Projects designed to en­ opportunity to comment on the ity of such Federal agency. through 1972, and the applicant is sub­ ments in § 570.303. hance the rational use of energy for application. Eligible Appltcants. Ellgible appll­ ject to the phase-in provisions of community development. ' Cd> Reports. In lleu of the annual per­ c:anf.s are States, and units of general DAVID 0. MEEKER, Jr., § 570.102(c). Neighborhood f)reservation. Proj­ formance report cited in § 570.906, re­ local government as defined in § 570.3 Assistant Secretar11 for Com­ ects which maximize the use of existing cipients shall submit the following: • For the purpose of this seotion, the Grants may aiso be made under this munity Planning and Devel- housing st.ock and community develop­ Ci) Outline for Final Project Report. seeond sentence in § 570.3Cv> includes section whenever implementation of the opment. proj­ ment a.nd other resources for neighbor­ Midway through completion of the those entities described in § 570.403Cb) provisions of § 570.105 regarding the [FR Doc.75-S486 Filed 2-6-75;8:45 am) hood preservation. ect and (3). qualification of urban counties results in (3) Other criteria. In addition 'to the speclfled by HUD> each recipient shall Cc) Criteria for Funding. Within the above criteria, HUD will consider the prepare a detailed outline of the final 11mits of ava.llable funds, applications degree to which applications: project report under guidelines provided will be funded on the basis of the follow­ m Benefit persons of low and mod­ by HUD.- ing criteria: erate inconie. Cll) Draft RetJort. The recipient shall U> Severity and magnitude of the fed­ cm Integrate and relate the provision submit to HUD, six copies of a draft of erally recognized disaster, with priority of housing to the provision of public the final project report with all readllY given to needs caused by Presidentially facilities and/or supportive social serv­ reproducible charts, tables, graphs, a.nd declared major disasters. ices. appendices that are t,o be included in the (2) Community development needs (ill) Demonstrate lmijroved policy­ .final report. In addition, each recipient identlfled which are essential for the 1m­ pla.nning-management capacity. - shall meet the requirements of § 570.906 med1a.te restoration or ma.int.en.a.nee of Demonstrate the involvement of concerning notice of the avallabillty community health, safety, or econorriic both the public and private sectors. of the report for examination by the stability and resources are not available Encourage and reinforce the cre­ public with the exception that reports from other sources to meet these com­ ation of community a.nd neighborhood need only be available to be copied by munity development needs 1n a timely development. organizations with the the public. fashion. staff and ability to attract and involve (ill) Final Report. The report shall de­ Cd> A1Jplfcation Requirements. An ap­ public and private resources. scribe in appropriat.e detail the objec­ plication should be submitted within 120 Serve as a prototype for bnprov­ tives of the project and how they were days after either the Presidential dec­ tng community development actMties, met, the methods and techniques that laration or other Federal recognition the demonstration of which would not were used, the types of problems en­ that disaster or emergency assistance is otherwise be undertaken without Fed­ countered during project execution and required. The application shall describe eral assistance. the methods used to resolve them and the emergency needs, the proposed pro­ Promote an increase in the diver- the conclusions and recommendations gram of activitt~. sources of funds and 81.ty and vitality of neighborhoods. that are to be drawn from the demon­ the level of funding requested. If the Address problem areas common stration project. The final report shall emergency nature of the needs requires, to a substantial number of communities. be in a form and manner prescribed by satisfaction of selected application re­ (ix) Demonstrate activities which can HUD. quirements may be postponed or waived be replicated by and transferred to a Records. Recipients must comply by the Secretary. Applications shall be substantial number of communities. submitted to the appropriate HUD Area <4> Other review factors. In addition, with the requirements of § 570.907, ex­ cluding § 570.907. In lleu of this ex­ omce In a form and manner prescribed each application will be evaluated by ception, recipients shall maintain rec­ by HUD to ensure coordination with re­ §Uch criteria as: ords describing the process used to pro­ spect to other disaster relief and emer­ (1) The overall technical merit of the Vide _a.n opportunity for citi7.ens to com­ gency measures undertaken or being proposed project including the specific considered. impact of the innovation. ment on the application. § 570.408 Inequities funds. (ii) The unique capabilities, related § 570.407 Federall7 recognized dis­ experiences, facilities or techniques astell'!J. Ca> General. Funds are available which the applicant possesses and offers General. Grants under this section under this subpart to correct in whole or for achiev1ng the objectives of the shall be the purpose of meeting in part inequities resulting from the al­ project. emergency community development location provisions of Section 106 of the (iii) The unique qualification capa­ needs caused by federally recognized Act. bilities and experience of proposed key disasters. For purposes of this section, The avallabllity of discretionary any hurricane, tornado, storm, flood, local governnient as defined in the first grant funding for innovative projects in high-water, wind-drlven water, tidal sentence of § 570.3 or in § 570.403 . light of competing needs. wave, tsunami, earthquake, volcanic Cc) Criteria for selection. The Secre­ Cc> Application requirements. Appli­ eruption., landslide, mudslide, snow­ tal'Y shall make· grants to eligible appli­ cations shall be submitted to HUD's Of­ storm, drought, fire; explosion, or other cants, gtVing priority t.o the follo'wing: fice of Policy Development and Research catastrophe in any part of the United Applications for funds available under through the appropriate HUD Area Of­ States which (1) in the determination of this subi>art shall be reviewed by the fice. Applications shall ,be in a format the President, pursuant to the Disaster Secretary in accordance with the follow­ presctjbed by HUD and shall include the Relief Act of 1974 C42 U.S.C. 512ln.>, (1) ing criteria: following: causes damage of sufficient severity a.nd (1) Funding under this subpart is nec­ Cl) A one page abstract summarizing magnitude to warrant major disaster as­ essary to correct a technical error in the proposal and indicating ·where else sistance under such Act, above and be­ the computation of a locality's entitle­ in HUD or any other Federal agency the yond emergency services by the Federal ment amount. application has been sent within the last Government, to supplement the efforts <2> ~ding under this subpar_t ls two years. and available resources of Stat.es, local needed by an a.pplicant, meeting the cri­ <2> A narrative describing the pro­ governments and disaster relief organi­ teria. as specified in § 570.4.0l, (3), <4>, <5>, UJ>, and ance to supplement State and local ef­ the applicant's hold harmless amount as (8) with respect to activities t,o be under­ forts to save lives and protect public calcul&ted pursuant to I 570.103Cc> 1s taken with funds under this Part. In ad- health and safety or to avert or lessen signiflcantiy lower than the average

FEDERAL REGISTER, VOL. 40, NO. 27-FRIDAY, FEBRUARY 7, 1975 FEDERAL REGISTER, VOL. 40, NO. 27-FRIDAY, FEBRUARY 7, 1975 Would you like to know IF ANY CHANGES .HAVE BEEN MADE IN CERTAIN TITLES OF THE CODE OF FEDERAL REGULATIONS without .readfog ' the Federal Register every day? If so, you may wish to subscribe to the "List of CFR Sections Affected." II $lQ.OO List of CFR Sections Affected per year The "List of CFR Sections Affected" is designed to lead users of the Code of Federal Regulations to amendatory actions published in th.e Federal Register, and is issued monthly in cumulative form. Entries indicate the nature of the changes.

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Note to FR Subscribers: FR Indexes and the "List of CFR Sections Affected" will continue to be malled free of charge to regular FR subscribers. ECONOMY AND ENERGY:

THE PRESIDENT'S PROGRAM IN BRIEF

THE WHITE HOUSE - FOREWORD -

Immediately following the State of the Union message, over one thousand leaders from every segment of American society came to the White House for a series of briefings and discussions on the economic and energy proposals in President Ford's message. In the course of this series of discussions, certain basic questions kept recurring.

The purpose of this pamphlet is to answer many of the most commonly-asked questions by presenting a brief overview and highlights of the President's program. ECONOMY AND ENERGY - THE PRESIDENT'S PROGRAM IN BRIEF

President Ford's comprehensive economic and energy proposals are designed to respond to one of the most complex and serious challenges in American history. This paper provides a brief and frank discussion of the situ­ ation.

The problem can be simply stated: We are experiencing the highest rate of inflation since World War II and a recession with unemployment already over seven percent. On top of this, the United States faced with a growing dependence for oil on unreliable foreign sources at prices that pose very serious national security, financial and economic problems.

Each of these problems is closely linked to the others. Because of that linkage they must be treated together.

Inflation has resulted from a number of causes, including:

Many years of excessive Federal spending and too rapid growth of money and credit.

The quadrupling of oil prices by the major foreign producing countries.

Poor harvests leading to higher food prices.

TWO devaluations of the dollar.

This inflation has helped create the recession by:

Cutting the real purchasing power of paychecks.

Pushing interest rates to high levels that work severe hardship on many sectors of the economy, particularly homebuilding.

Depressing consumer confidence and their willing­ ness to buy. 2 3

Higher oil prices imposed by the oil exporting countries President Ford, after wide consultation, has developed contributed directly to both recession and inflation. This a three-pronged attack on the challenges of recession, in­ increase in the price of energy and energy-related products flation and energy dependence. Since it is designed to deal works like a tax levied by a foreign power. It reduces the with a wide range of very difficult problems, his program is cash an individual or a family has available for other spend­ complex. As a result, the program can be judged fairly only ing, but also removes these revenues from our Nation as a by viewing it as a whole since the various parts are closely whole because, unlike domestic taxation, they are not even interrelated to achieve the desired objectives. available for public spending here at home. The goals of the President's program may be summarized The higher energy bill has thus resulted in a massive as follows: flow of dollars to the oil exporting countries. Other industrialized countries are also paying very high oil bills, To hasten recovery from the recession, the President threatening the stability of world financial markets and their sees the need for an immediate, across-the-board tax rebate of ability to pay for the energy they need. l $12 billion for individual taxpayers on 1974 taxes, returning to them up to 12 percent of their taxes in May and September The Arab oil embargo brought home forcefully to every l of 1975. An additional $4 billion would be in the form of a American what this dependence could mean to our economy and one-year increase to 12°/o in the investment tax credit, thus to our national security, and yet our dependence steadily spurring industrial expansion and creating new jobs. The increases. Domestic oil and gas production is falling and intent of the tax refund is to give the economy a sharp, one­ imports are rising. Today, imports account for about 40°/o time stimulus ($16 billion total) that would speed recovery of our petroleum consumption. If present trends continued, without causing more inflation. we would be importing 5a'/o of our oil by 1985. To curb inflation, the President will attempt to effect Unless we take immediate steps to reduce our consumption a moratorium on new spending programs outside the energy field of fuel and increase our self-reliance, we will experience and a five percent limit on automatic cost of living increases greater imports, have more severe balance of payments problems, in social security benefits, military retirement pay and the and be subject to major interruptions and price manipulation like. The program also includes a five percent limit on Fed­ by oil exporting countries. eral pay increases in 1975. Inflation is showing some signs of abating, but the President believes it is critical to The control of the oil cartel countries over oil supply restore long-term discipline to our fiscal and monetary policies and prices gives them leverage over our entire economy# and in order to eliminate this continuing threat. represents a tremendous drain on our national wealth. To free us from dependence on foreign energy sources, To put the situation in perspective: In 1970, we spent the President has designed a tough new program to encourage less than $3 billion on oil imports; in 1974, we spent roughly conservation and greater domestic energy production. $25 billion; and by 1977, if we fail to take action now, it is estimated that we will pay $32 billion to the oil-producing Energy conservation would be achieved through a series of countries. And with those import dollars go the real income import fees, excise taxes and decontrol of domestic oil and and wealth we could otherwise enjoy. gas prices with the increased costs recaptured through tax revenues that would raise the price of most petroleum products The President believes we must cut our oil imports by on an average of 10 cents a gallon. This will reduce demand about one million barrels per day by the end of this year and for these products sufficiently so that, together with increased by two million barrels per day by the end of 1977. domestic production, the President's goals can be met. 4 5

As part of a longer run solution, the President has an The President's total program will not depress the agreement with the major domestic auto makers to improve economy because higher energy costs will be offset by the gasoline mileage by 40% on the average by 1980,compared to permanent reduction of taxes. 'rhis program of tax reduction 1974 cars. He is also working to change building standards includes $16.5 billion for individuals that will show up as to improve insulation and other building practices so as to an immediate reduction in taxes withheld from current earnings. reduce energy needs. Efforts are also under way to sub­ Seventy percent will go to persons with incomes of less than stantially improve the energy efficiency of major appliances. $15,000 per year. Individuals who pay no taxes at all will receive $2 billion annually - or about $80 per person. Increased energy production in the United States would Corporate taxes will be cut by $6 billion. State and local be achieved through a number of measures. 'rhese include oil governments will also receive added funds under the General production from Naval Petroleum Reserves and higher productim Revenue Sharing formula. In addition, individuals who install from existing wells in response to improved incentives because insulation in their homes will receive a tax credit for a domestic oil prices will no longer be below prices we must pay portion of those costs. for imported oil. These policies will be supplemented by actions to encourage faster development and production of our In summary, higher energy taxes will increase energy domestic energy resources. prices, but these higher prices will be an incentive for all energy users to look for ways to reduce their own use of ~- In addition, the President would require: energy, whether for gasoline, heating oil, electricity, etc. Some businesses or individuals will find that they can reduce Such adjustments as are necessary to permit expanding their use of energy, while others will decide to pay the higher use of our domestic energy supplies to produce electric power. price. Under the President's program everyone can make his or her own decision. A long range synthetic fuels program. In order to avoid hurting average and lower income people A continuation of the accelerated program of research most, because of higher energy costs, a disproportionate share and development in the energy area. of the reduction in taxes will go to low and middle income families. For many families, the tax cut will restore a part A question that is often raised is whether this program of the purchasing power that has been lost as a result of in­ contributes both to inflation and recession by increasing flation. Higher income people, however, will receive perma­ energy costs to consumers. nent tax reductions that do not fully offset their higher energy costs. 'rhe President felt that the costs could not be avoided if the economy was going to reduce its demand for petroleum The President contemplates a tough, comprehensive, and products and become less dependent on foreign energy sources integrated program. It would help protect our national security. by 1985. 'rhe alternative would have been a system of rationing It would stimulate the economy through tax cuts to get us out that would not solve our energy problem and would be unfair to of the recession. It would keep a lid on Federal spending to the average American. prevent a new round of inflation, and bring the Federal budget into balance when the economy recovers. It would raise petro­ The President's total energy program will have a one-time leum prices in order to encourage conservation and increase effect of increasing prices by about 2%. 'rhe estimated increased domestic production. And it would recapture excessive oil cost of petroleum and petroleum-related products to all segments company profits through a windfall profits tax. On balance, of society will be about $30 billion a year. Estimate of the it would deal fairly and equitably with consumers and producers average annual cost per family is about $275. alike. EMBARGOED FOR RELEASE JANUARY 15, 1975 UN'I'IL 1: 00 P .M., EST EMBARGOED FOR WIRE TRANSMISSION UNTIL 10:00 A.M., EST

Office of the White House Press Secretary ------~------~------

THE WHITE HOUSE

TO THE CONGRESS OF THE UNITED STATES:

Twenty-six years ago, a freshman Congressman, a young fellow, with lots of idealism who was out to change the world,_ stood before Speaker Sam Rayburn in the well of . this Hom~e and solernnly swore to the same oath you t.ook yesterday. That is an unforgettable. experience, and I congratulate you all. Two days later, that same freshman sat in the back row as President Truman, all charg~d up by his single-handed election victory, reported as.the Constitution requires on the State of the Union. When the bipartisan applause stopped, President Truman said:

"I am happy to report ,to this Eighty-first Congress that the State of the Union is good. O~r Nation is better able than ever before to meet the needs of the American people and to give them their fair chance in the pursuit of happiness. ·It is foremost among the nations of the world in the search for peace.u Today, that freshman Meniber from Michigan stands where Mr. Truman stood.and I must say ·to you that.the State of the Union is not good. Millions of Americans are out of work. Recession and inflation are eroding the money of millions more. Prices :.re too high and sales are too .slow.

more 2 This year's Federal deficit will be about $30 billi8ft; next year's probably $45 billion. The national debt will rise to over $SOO billion. Our plant capacity and productivity are not increasing fast enough. We depend on others for essential energy. Some people question their government's ability to make the hard decisions and stick with them. They expect Washington politics as usual. Yet, what President Truman said on January 5, 1949, is even more true in 1975. We are better able to meet the peoples' needs. All Americans do have a fairer chance to pursue happiness. Not only are we still the foremost nation in pursuit of peace, but today's prospects of attaining it are infinitely brighte~. There were 59,000,000 Americap.s employed at the start of 1949. Now there are more than 85,000,000 Americans who have jobs. In comparable dollars, the average income of the American family has doubled during the past 26 years. Now, I want to speak very bluntly. I've got bad news, and I don't expect any applause. The American people want action and it will take both the Congress and the President to give them what they want. Progress and solutions can be achieved. And they will be achieved. My message today is not intended to address all the complex needs of America. I will send separate messages making specific recommendations for dome~tic legislation, such as General Revenue Sharing and the extension of the Voting Rights Act. The moment has come to move in a new direction. We can do this by fashioning a new partnership between the Congress, the White House and the people we both represent. Let us mobilize the most powerful and creative industrial nation that ev~r existed on this earth to put all our people to work. The emphasis of our economic efforts must now shift from inflation to jobs. To bolster business and industry and to create new jobs, I propose a one-year tax reduction of $16 billion. Three-quarters would go to individuals and one-quarter to promote business investment. more 3 This cash rebate to individuals amounts to 12 percent of 1974 tax payments -- a total cut or $12 billion, with a maximum of $1,,000 per return. . I ..call tb(i'ay on the Congress to ~ct by A.Pril 1.. If ypu do, th.e Treasury can se.nd the first check for half the rebate in May and the second by S~ptember. The other one-fourth qf the cut, about $4 bfllion, will go to businesses, including farms, to promote expansion and create. 11}.0?'e jobs. The one-year reduction f o.r b\lsinesses would be in the fo?'m of a liberalized investmen:b tax credit inci;-easihg the rate to 12 percent for allbtlsinesses. This tax cut does. not includ~ the more fundamental reforms needed in our tax .. system. But i~ points us in the. right direc'tion -- allowing us as taxpayers rather than the Government to spend our pay • .Cutting tax~s·, now, ·15 essential. i.f we are to turn .the economy around. A tax cut"~offers ·the best hope of creating more jobs. Unfortunately,,lt will increase the .size of the budget deficit. Therefore; .it is m.ore important than ever that we take steps to .cont'ro1 the growth of FeQ.eral expenditures. · . " · · Part of our trouble is that we have beenself-indulgent. For decades, we haYe been voting ever-increasing levels of Gove:t:'ninent benef~ts -- and now. the hill has c.ome .due. We have been adding so· many new· :prqgrams that the f).ize and growth of the Federal budget has. taken on a life or its own. · · . "" One charabteristic of theae prqgj:-am$ 1~ th~.t their cost increases aut:omat.icall,;V. every year because the number of people e'ligible for most of these benefits increases every year. When these programs are enacted, there is no dollar amount set.. No one ,knows what they will cost•'. All we know .is that whatever they ·cost .las~ year, they will cost more next year. . . . . It is a question.of simple arithmetic. Unless we check the excessive gr9wth of .Federal ~xpenditures or impose on ourselves matching increases in taxes , .. we will continue to run huge inflationary deficits in the Federal budget. If. we project the current built-in momentum or Federal spending through , the . next 15 years, Federal,, ~tate, and local government expenditures ·could easily comprise half of our gross national product. This compares with less than a third in 1975. · ,

more (OVER) 4 I am now in the process ot preparing the budget sub­ missions ~or fiscal year 1976. In that budget, I will propose legislation to rest.rain the gr()Wth .of a number Of existing programs. I have 'a'lso 'Concluded that no new .spending programs can be initiated this year, except those fbr, energy. ·Further, I will not hesitate to veto any new spending programs adopted by the Congress. As an aqditional step toward putting the Federal .. government •s ·house in order, I recommend a five percent limit on Federal pay increases in 1975. In ai1 .Government programs tied 'to the consumer price index -- including social security, civil service and military retirem~nt. pay, and.foodstamps -- I also propose a on~-year maximum increase of 5 percent. , · ·None of these recommended ceilir:ig limitations,' over which the Congress has final authority, are easy tp propose, because in most cases they ,involve aritic,ipated payments to many deserving p~ople. 'Nonethele.ss, ft ··must be ·done. I must emphasize that I· am not asking you t·o eliminate, , reduce or freeze these payments. I am merely recommending that we slow down the rate at which these, payments increase and these programs grow. Only a · :r:"educti.on in the growth in spending cari .keep ' Federal .borrow;ing down and reduce the .damage·to the :private sector from high interest rates. · Only a reduction in spending can.make it possible for the Federal Reserve System to avoid an inflationary growth .111: 1;;.11e money supply and thus restore balance to our ~conomy~. A IJl.ajor reduction in the growth of.Federal·sperid1ng can·help_to,dispel'..the. uncertainty that so many feel about our economy, and put · us on the way to cµring our economic ills •. ; -~ . ' . . ··If we do riot· 'act to slow down the rate of in~rease iri Federal spending, the United States Treasury wil·l ·be legally obligated to spend more than $360 billion in F~·scal Year 1976 -- even if· no. new programs are enacted·. 'rhese are not matters ofconjectureo:i-.prediction, 'bti.t.a:gain .of simple arithmetic. The size of these numbers and,their implications for our everyday lire· and the heaith of our economic system are shocking. ;r submitted to,, the last Congress ·a list of budget deferrals and recisions. There will be more cuts :recom­ mended in the budget I will submit. Even so; the ~evel of outlays for fiscal year 1976 is still much too high. Not only is it too high for this year but the decisions we make now inevitably have a major and growing impact on expenditure levels in future years. This is a fundamental issue we must jointly solve. more 5 The economic disruption we and others are experiencing stems in part from the fact that the world price.of petroleum has quadrupled 1n·, the last year •. ; Bu·t ·,we ¢annot put all of the blame on the oil•exporting nations. We in the United States are not blameless. Our growing d~pendence upon foreign sources has:been adding·to our vulnerability for years and we did nothing to prepare· ourselves for an event such as the embargo~of 1973. · During the 1960s, this country had a surplus' capacity of crude oil, which we were able to make av?ilable to our trading partners whenever there was a disruption of supply. This surplus capacity enabled us to influen,ce both supplies and prices of crude oi-1 ·throughout the world. Our excess capacity neutralized an·y· effort at establishing ari effective cartel, and thus the rest of the world was assured of adequate supplies of· ~il at rea-sonable pric.es. In the 1960s,; ·our surplus' capacity. vanished and, as a consequence, the latent power of' the oil CB:I'tel .. could emerge in full force. Europe and Japan, both heavily dependent on imported oil, now struggle to keep their ebonomies in balance. Even the United States, which is far more self­ sufficient than most other industrial countries,, has been put under serious pressure. · · · ·

I am proposing a program whi'ch will begin to restore our country's surplus ca}i>acity in :total energy. In this way, we will be able to assure ourselves reliable and adequate energy and help·foster a· new world e~ergy stability for other major consuming nati<;ms. · · ·. But this Nation and,t in fact, the world must face the prospect of energy difficulties between now and 1985. This program will impose burdens on all of us with the aim of reducing our consumption of ener-gy and increasing pro­ duction •. Great attention has been pa:id to considerations of fairness and I can assure you that the burdens will not fall more harshly on those less a?le .to bear them. I am recommending a plan to make· us invulnerable to cut-offs of foreign oil. It will require sacrifices. But it will work. · 1· . ,·· . I have set the following national energy goals to assure that our future is as secure·and productive as our past: . ' First, we .must·reduce oii imports by 1 million barrels per day:by the end of this year and by 2 million barrels per day by the end of 1977. more (OVER) 6 Second, we must end vulnerability to economic disruption by foreign suppliers by .1985. Third, we.must. develop our energy.technology and resources so that the United States has the ability to supply a significant share of the energy needs of the Free World by the end · of this century. - . . To attain these objectives, we need immediate action to· cut imports. Unfortunately, in the short-tetm there are only a limited number.of actions which can increase domestic supply •. I will press for all of them~ ·

I urge quick action on legislation to allow commercial production at the Elk Hills, California, Nav,al Pet~oleum Reserve. In order that we make greater use ot 'dQmesti_c co~l resources, I am submit.ting amendments to· the Energy Supply · and Environmental Coord1riat:1:on Act .which will greatly increase the number of power plants that can be promptly : converted to coal. ·· Voluntary conservation continues to be essent1·a1, but tougher programs are also needed -- and needed now. There­ fore, .I am using Presidential powers to r>a!se the. fee on . all imported crude oil and petroleum products. Crude oil fee levels will be increased $1 per barrel on ,February li by $2 per .barrel.on March land by $3 per barrel on .April 1. I will take action to reduce undue hardship on any geo­ graphical region. The foregoing are int~rim administrative actions. They will be rescinded when the necess·ary legislation is enacted. · To that end, I am requesting the Congress to.act within 90 days on a more comprehensive energy tax p~o~ra.m~ It includes: Excise taxes and import fees .totalling _$2 per barrel -0n product imports and on all .crude oil. Deregulation of new natural gas and enactment of a natural gas excise tax. Enactment of a.windfall profits tax by April 1 to ensure that oil producers do not profit unduly. At the same time I plan to ta.ke .P.resicient ial initiative to decontrol t.he. J?rice of .domestic crude oil on April l.

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Th~ ~ooner Congress acts, the more effective the oil conservation program will be a,nd the quickeP the Federal revenue's can be returned to our people. I'am ~repared to use Pre~idential authQrity to limit imports, as necessary, to assure the success of this program. . . . I want you to know that b.efore deciding on my energy conservation 'program, I considered rationing and higher gasoline taxes as alternatives. Neither would achieve the d~sired :results and both would produce ·unacceptable inequities. A massive program must be initiated to increase energy supply, cut demand and provide new standby emergency programs to achiev:e the independence we want by 1.9 85. The largest part of incx-eased oil production. muf;t come from new frontier areas on the Outer Continental Shelf and from the Naval Petroleum Reserve Ne. 4 in Alaska •. It is the intention of this Adminiirt:i·aticn to r.o·. .re a.:-::e:e.d r~iuh exploration, leasing and production on tJ;iose f:rcntie::- areas of the Outer Continental Shelf where the environ­ mental risks are acceptable.

Use of our .most abundant do.mestic resource -- ~oal is severely limited. We must strike a reasonable compromise on environmental concerns with coal. I am submitting Clean Air Act amendments which will allow greater coal use with­ out sacrificing our clean air goals. I vetoed the strl,p mining legislation passed by the last Congress. With appropriate changes, I will sign a revise.cl, version into law. ' . I am proposing a number of actions to energize our . nuclear power program. I will submit legislation to expedite nuclear licensing and the rapid selection -Of &,ltes-. In recent months, utilities have -cancelled.or postponed over 60 percent of planned nuclear expansion and 30 percent · of planned additions to non-nuclear capacity. Financing problems for that industry are growing ·worse. l. am there­ fore recommending that the on~ y~ar investment tax credit· of 12 percent be extended an additional two years to specifically speed the . con.struction of ·power plants that do not use natural gas or oil. I am also submitting proposals for selective changes ·in State util,ity commission regulations. ·

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To p~ovide the critical stability for our domestic energy production in the face ~f world price uncertainty, I will request~l~gislation to authorize and require tariffs, import quotas or price floors to protect our energy prices at levels which will achieve energy independence. Increasing energy supplies is not enough. We must also take additional ~teps to cut long-term consumption. I therefore propose: Legislation to make thermal efficiency standards mandatory for all new buildings in the United States. These st.andards would be set after appropriate consultation with architects, builders and labor. A new tax credit of up to $150 for those home owners who install insulation equipment. The establishment of an energy conservation program to help low income families purchase insulation supplies. Legislation to modify and defer automotive pollution standards for 5 years to enable us to improve new automobile gas mileage 40 percent by 1980. These proposals and actions, cumulatively, can reduce our dependence on foreign energy supplies to 3-5 million barrels per day by 1985. To make the United States . invulnerable to foreigri disruption, I propose standby emergency legislation and a strategic storage program of 1 billion barrels of oil for domestic needs and 300 million barrels for defense purposes. , I will ask for the funds needed for energy research and development activities. I have established a goal of 1 million barrels of synthetic fuels and shale oi~ production per day by 1985 together with an incentive program :~q ~chieve it. ' . ' I believe in America's capabilities. Within th~. next ten years, my program envision~: 200 major nuclear power plants, 250 major new coal mines, 150 major coal-fired power plants, 30 major new oil refineries, more 9 20 major new isynthetic fuel' p·1ant:s, ·

, .-"!'· ·;the drilltng of many thousands ,of new oil wells,

...... :the: 1nsula.tion of·· 18 million· ho~s,

and. construction c>f m1111.ons· of· ·new· automobiles, trucks and buses that use much less fuel . . .

; ,.,we. can do ·it. In artother crisis ...... the1 one in: 1942 ·-­ President· .Franklin D. Roosevelt sai'd :th:ts .country ~would bui:.ld 60.;000 >aircraft... By. 1943-,: production had reached· 125,000' airpl:anes annually. . ' , . ·· · ': · ·

. ',; If the Congress and the American people will work with me to at.ta:in . these targets, they will be achie1ved a:nd' surpassed. ·.. , · .From adversity, let us seize opportunity. · Revenues· ·or some $30 bi:llion frotn 'higher energy taxes designed 'to· · 1 encourage conservation must be refundea·t:o,the American peo17'ie in .a manner which corrects di·stortions in our tax system wrought by inflation. People .have been pushed into higher ta:x brackets, by infl.ation with a· consequent reduction in their a·ctual ;·· spendin.g•·power.. Business·: .taxes a:re s·imilarly distorted · · because· inflation exaggerates reported profits result·ing · in excessive taxes .1 · · · · Accordingly, I propose that future individual income taxes be reduced by $16. 5 billion. This will be .done by; · raising the low income allow·an.ce and reducing tar·rates • This continuing tax cut will·pri1marily benefit low-er·and. middle ·:tncome taxpayers. · For example, a typical' family of four with a gross . income of $5,600 now pays $185 in Federal income taxes. Under this tax cut plan, they would pay nothing. A family of ·f~ur with a' gross income of $12 ,500 now pays $1·;260.in .Federal.taxes. My plan reduces that by $300. Families grossing $20,000 would receive a reduction of $210. ' Those with the very lowest incomes, who· can leas·t afford higher costs, must also be compensated. I -propose· a payment of $80 to every person 18 years of' age '8.nd: older in that category. · , State· and· local governments will receive .$2 billion in additional revenue sharing to or:rset their increased energy costs. more (OVER) lO To offset inflationary distortions and to.generate more economic activity, the corporate tax rate;will-be reduced from 48 percent.to 42 percent. Now, let me turn to the international dimension of the present crisis. At no time in our peacetime history has the state of the Nation de.pended more heavily on the state of the world. And seldom if ever has the state of the world depended more heavily. cm '.the state of.. our Nation. ' . ·::, . ~ '. The economic distress is global. We will not solve it at home unless we help to remedy the profound economic dislocation·abroad. World trade and monentary structure provides markets, energy, rood and vital raw materials for all nations. This internatiortal system is now in jeopardy. This Nation can be proud of significant achievements in recent years in solving problems and crises. The Agreement, the SALT agreements, our new relationship with China, the unprecedented efforts in the Middle East -- are immensely encouraging. But the world is· not free from crisis. In a· world of 150 nations, where.nuclear technology is proliferating and regional '.C.onflicts continue, inter­ national security cannot be taken for granted. So let there be- no mistake.. about it: international cooperation is a vital fact of' our lives today. This is not amoment for·the American·people to.turn inward. More than ·ever. b·ef6re, our own well~.being depends on America's determination and leadership in the world. We are a great•Nation - .... ·spiritually, politically, militarily~ diplomatically·and'economically. America's commitment·to international seeurit.y,has ·sustained the safety of allies and friends in many areas .... _ in t·he Middle East, in Europe, in Asia. Our turning away would unleash new instabilities apd dangers around the globe which would, in turn, threaten our own security. At'the end of World War II, we ·turned a similar challenge into an historic achievement. An old order was in disarray; political and economic institutions were shattered. In that period, this Nation and its partners built new institutions, new mechanisms of mutual support and cooperation .. · Today, a.s then, we face an historic opportunity. If we act, imaginatively and boldly, as we acted then, this period will in retrospect be seen as one of the great creative moments of our history. The whole world is watching to see how we respond. more ·11 . . . A resurgent America.il economy would do more to resto~e the confidence of ·the· world· in its own -future· than':anything else we can do. The. program that this Congress will:· pass can demonstrate to the world that we 'have started to put our own house in order. rt~can show that this Nation is able and willing to help other nations meet the'commbn challenge~ It can demonstrate that the United States_. will fulfill its responsibility as a leader amorig nations •. . At,stake·isthe future of the industrialized democracies, which·have perceived their destiny in common and sustained it in common for 30 years. · ,,The developing nations are also at a turning point· The poorest nations see their hopes of ·reeding t-heir hungry and developing the1r:.soc1et·ies shattered· by· the economic crisis. The long-term economic future for.the producers of raw materials also depends on cooperative solutions. Our relations with the Communist countries are a basic factor of the world· environment: We must ·seek to build a long-term bas·ls for coexistence. We will ·stand by .,our ' · principles and our interests; we will act firmly when challenged. The kind of world we want· depends on a broad policy of creating mutual incentives for restraint and for cooperation. ·· As we move forward to meet our global ·challenges and opportunities, we must have the tools to do the job. Our military forces are strong and readyc This military strength deters aggression a:gai'nst our allies, stabilizes our relations with former adversaries and protects<' our homeland. Fully adequate convent'iohal and strategic f'orces cost many bill1:ons, but ''.thes:e dollaJi'S are sound insurance for our safety and a more peaceful world. ..· Military strength alone is not sufficient. Effeetive­ diplomacy is also essential in preventing c~nfI1ct and build-1-ng· world understanding~ ·The Vladivost·~k negotiations with the Soviet Union represent a major step in moderating 1trategic arms competition. My recent discussions with leaders of the Atlantic Community, Japan and South Korea have contributed to our meeting the common challenge. But we have serious problems before us that require cooperation between the President and the Congress. By the Constitution and tradition, the execution of forei~n policy is the responsibiiity of the President·~ '· more

(OVER) 12 In recent years, Wlder the stress of the Vietnam War, legislative restrictions on the President's capability to execute foreign and mil1tary:dec1s1ons· have proliferated. As a member or" the Congress:, I opposed some and approved others. As President, I welcome the advice and· cooperation of the House and Senate. "· But, if ou~ fore:;\.gn.policy is to be successful we cannot rigidly restrict.in legislation the ability of the President to act •. The conduct of negotiations is 111 suited to such limitations. For my part, I pledge this Administration will act,in the closest consultations with the Congress as we race delicate situations and troubled times throughout the globe'. · · When I became President only five months ago, I promised the last Corigre1:3s a policy of communication, conciliation, compromise and cooperation. I renew that pledge to the new members of this.Congres~. To sum up: America needs .a new direction which I have sought to chart. :here today _..;, a change of course which will: . . .back -- .' put. the-... -.. unemploied' to work;" increase real income and production; restrain .the growth of· government spending; achieve energy independence; and

--. ' advance. the .caus~. of .. world understanding. We have· the ability. We havethf?know-how. In part­ nership with the American people, wew1i1 achieve these objectives. ., As our 200th anniversary approaches, we owe it to ourselves, and to posterity, to rebuild our political and economic strength. ,Let us.make America, onee again, and for centuries more tp come,. what.it has so long been -- a stronghold and beacon-light of liberty for the world.· : ·. ,... . .

GERALD R. FORD

THE WHITE HOUSE, January 15, 1975. 4:.>. # # # # EMBARGOED FOR RELEASE JANUARY 15, 1975 UNTIL·l:OO P.M., EST EMBARGOED FOR WIRE TRANSMISSION UNTIL 10: 00 A.11. , EST . ' Off ice of the White House Press Secretary •. ------~ ------. - - - THE WHITE HOUSE FACT SHEET THE PRESIDENT'S STATE OF THE UNION MESSAGE

THE PRESIDENT'S ECONOHIC AND TAX PROGRAM Background . . . . , ...... _ . . • .. , . . 5 Current Situation and Near-term· Outlook for the Economy. ·. 6 Majo:t: Elements of the President's Economic and Tax Program • • • • • • • • • · • • • • • • • • • • 7 I. A $16 Billion Temporary Anti•Recession Tax Reduction • • . • • • .- • : • • • • • • • • , • 7 II. Energy Conservation Taxes and· Rees·. • • • • • • • 7 III. · Permanent: Tax Reduction Made Possible by Energy l'axes and Fees • • ·• . • • • • • • • • • • • ~ • • • 7 IV. One Year Moratorium on New Federal Spending Programs ...... 8 V. · Budget. Reductions • • • • • • • • • • • , • • • • 8 Specific-Proposals Announced by the President •••••• 9 I. T~orar:r, ~ti-Recession Tax Cut of ·~16 ·Billion • ·• • • • • • • • • • • • . • • • • • 9 A. · Tax Cut for Individuals of $12 Billion • • • • 9 B. Temporary Increase in Investment Tax Credit of $4 Billion • • • • • • • • • • • • • 10 II. Energy Conservation Taxes and Fees •••••••• 12 A. Administrative Actions •••••••••••• 12 1. Oil Import Fee • • • • • • • • • • • • • • 12 2. Crude Oil Price Decontrol • • • • • • • • 13 . 3. Control of Imports . • . . . • . . • . . . 13 B. Taxes Proposed to the Congress • • • • • • • • 14 1. Petroleum·Excise Tax and Import Fee ••• 14 2. Uatural Gas Excise Tax • • • • • • • .. • • 14 3. Windfall- Profits Tax • • • • • • • • • • • 15 III. Permanent Tax Reductions and Payments to Hontaxpayers made possible by Energy Conservation Taxes ...... 17 A. Reductions for Individuals of $16.5 Billion .• 17 B. Residential Conservation Tax Credit of $.5 Billion •••••••••••••••• 18 C. Payments to Nontaxpayers of $2 Billion • • • • 19 D. Tax Reductions for Corporations of $6 Billion . • • • • • • • • • • • • • • • 20

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IV. Moratorium on New Fe

THE PRESIDENT'S ENERGY PROGRAM ' Background· • • • . • , ~ • • • • • • • • • • ·- . . . • • • 29 U.S. Energy Outlook --Near-term, Mid-term . and Long-term • • . . • • • , • • • . • • • • • • 30 National Energy Policy Goals and Principles Anuounced· by. the President • • • • • .• • • • • • • • • 31 I. Near-term (197 5-.1977) • • • • • • • • • • • • • • 31 II. Mid-term (1975-.1935) •••••.•••••••••• 31 III. Long-term (Beyond 1985) . • • • • • • • • • • • • .• 32 IV. Principles • • • • • • • .• • • . • • • • • • • • . 32 Actions Announced Today by the President • • • • • • • • • 33 I. · Actions Announced by the Pres~.dent to Meet Near-term (1975-1977) Goals •••.•••••••• 33 A. ·Administrative Actions •.••••••••••• 33 1. Import Fee on Petroleum • • • • • • • • . 33 2. Backup Import Control Program • • • • 34 3. Crude Oil Price Decontrol • "• • • • • • • 34 4. Increase Public Education on Energy Conservation . • • • • • • • • • • 34 B •. Legislative Proposals •••••••••••• 34 1. Comprehensive Energy Tax and Decontrol Program • • • • • • • • • • • • 34 a. Windfall Profits Tax on Crude Oil • • 34 b. Petroleum Excise True and Import Fee .• 34 c. New Natural Gas Deregulation • • • • • 35 d. Natural Gas Excise Tax • • . • • • • . 35 2. Elk Hills Naval Petroleum Reserve • . • • • 35 3. Conversion to the Use of Domestic Coal •• 35

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.. II. Actions Announced by the President to Meet Mid ... term. (1975·1985) Goals • • • • • • . • 36 A. Actions to Increase Domestic Energy Supply • • 36 l. Naval Petroleum Reserve Number 4 (Legislative) • • • • • • • • • • • • • • 36 2. Outer Continental Shelf (OCS) Leasing (Administrative) • • • • • • • • • 37 3. Reducing Domestic Energy Price Uncertainty (Legislative) • • • • • • • • 37 4. . Clean Air Act Amendments· (Legislative) • • 37 5.· Surface Mining (Legislative) •• ·• · ~ , •· •· 33 6. Coal Leasing (Administrative) • • • • • • 38 7. Electric Utilities • • • • • • · • • • • • • 39 a. 'Uniform Investment Tax: Credit (Legislative) • • • • • • • • • • • • 39 b. Higher Investment Tax·credit· (Legislative) • • • • • • • • • • • • 39 c. Preferred ·stock Dividend · ,. r Deductions (Legislative) •• •. • ••. 39 d. Mandated Reforms of State Utility Commission Processes (~egislative) • . 39 e. Enell'gy.Resources Council Study (Administrative) • • • • • • • • • • • 39 8 •. Nuclear Power • • • • • • • • • • • • ·• • • 40 a. Expedited Licensing and Siting (Legislative) • • • • • • • ·• • • • • 40 b. 1976 Budget Increase for Safety, Safeguards and Waste Management · (Legislative) •· • • • • • • • • • . • 40 9 •. Ene.rgy Fa.cilities Siting ·(Legislative) ·• • 40 B. Action to Conserve Energy • • • • • . • • • • 40 l. Auto Gasoline Mileage Increases (Administrative) • • • • • • • • • • . • • 40 2. Building Thermal Standards (Legislative) • • • • • • • • • • • • • • 41 3. Residential Conservation Tax Credit (Legislative) • • • • • • • • • • • • 41 4. Low-Income Energy Conservation Program (Legislative) ••••••••••. 42 5. Appliance Efficiency Standards (Administrative) • • • • • • • • • • • • • 42 6. Appliance and Auto Efficiency Labelling Act (Legislative) . • • • • • • • 42

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c. Emergency Preparedness Actions • • • • • • • • 42 l. Strategic Petroleum Storage (Legi$lative) " • • • ~ • • · .: · !' • - •·· ·; '· ·~' • · ~ · 42 2. ~t4ndby .. and Planning Authorities ·' (Legislative) . • . • • • . • • • •· ·• >'\ • .·- • • 43 a. ; .Enexgy Conservation_·· •.•. ~ •. , • • • • 43 'Q. , Petroleum Allocation • ··• ; •••••• 43 c. End· Use· Rationirig ' • •. • ·• • . •. • • • • 43 q •. 118.teriala Allocation.-: .• '. • • • • • • 43 e.•. ' Emergen-¢y Domestic Oil .. · · Production increase ·• •' ·• • • • • • • 43 : . : ( ···>.~ >: ~. ,. J>etrolewn Inventory Regul1atiott • • • • 43 ·:~~1: •. _t\ct,io:ns. Ap.nounced by .the President tO'·Mee.t'. · . Long-.tepn ·(Beyqnd 1985.) 'Goals •. , • · • '. · .. • .• . • • • 43 A_ •• Syn.th.etic. Fµels Program (Admini.strattve) • . • 44 B. Enel',igy

,, ,~.. : .. .. h •• • • ~ • ,, .. \ ,, • - • • '· Table Sunnnarizing Impacts of:Near- and Mid-term -· · Act,.op.s on ?e.tn>leum. Consumptioti: and Imports • • • • • 45

1 INTERiiATIONAt ~NERGJ POLICY :AND. FilWvCING · .ARRANGEMENTS -. ~ ' ·~ ' '• 46 :· Bac\cg~oiin~ .. :. .. . ,• ~· . .• . '' . . . , • • • 46 : u_.s_. fo11itipn .• !' -!' "" ..;• • • • ...... ' '"J . ''.' Actions ~iaken ·by· .Oi-,1 Consuming NatiOns . • . . 46 . , ' " O~her. U.S.- Act·ions an.d Proposals . ·. . • . ' ...... 47 .... ,: .. ' . .

< ' ·, . ' \ -,

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7he President's Economic and Tax Program_

The President's State of the Union Address outlined the nation's current .. economic situation and outl.90~, .. and his economic and tax proeram which are des,igned- to wage a simultaneous three~front car.ipaign against recession, in­ flation and energy dependence. RACK.GROUND The U.S. economy is faced with the closely linked· problems of inflation and :r~cession. Dµrin)3 1974, the econooy e>tperienced the_ hi~hes~ rate q.f ~nflation since World Uar II. Late in 1:>7l~, when,a re~ession set in, unet!lploy­ ment rose sliarply to Gver 7 percent, the highest level in 13 years. · · Accelerated inflation had its roots in the policies of the past and several recent developments not subject .to U.S. control. Specifically: E;,ccessive .Federal spending ·and lending for over a decade -.an'i too much- noney and credit growth. Unusually poor harvests contributed heavily to worldrwide food .shortages and ,escalating food · prices . . iJorld, petrole~ product pri.ces increased dramatically due to t~e Arab nations' enbarzo on shipoents of oil to .the U.S., the quadru­ plinz of the price of crude oil by the OPEC nations, and their shar~ reductions in crude oil production to Llaintain hi3her prices. 2ligher ener3y prices were passed throur:;h in the prices of other products and services. The decline in U.S. domestic production of oil and natural gas that be;:;an in the 1~50's also contributed to higher enerr,y prices.

more (OVER) 6 An economic boom occurred simultaneously in the industrialized nations of the world. There were two international devaluations of the dollar. Inflation contributed strongly to the forces of recession: The' real purchasing power of workers' paychecks was reduced. Inflation also reduced consumer confidence, contributing to the most severe slump in consumer purchasing since World war II. Inflation forced interest rates t'o very high levels; draining funds out of financial institutions that supply most mortgage loans and thus sharply reducing construction of homes. Federal Government spending and lending programs, accounting for over half the funds raised in capital markets, reduced the amount of money available for capital investments needed to raise productivity and increase living.standards.

CURRENT SITUATION AND NEAR-TERM OUTLOOK

The economy is now in a full-~fledged recession and unemployM ment will rise further. Inflation continues at a rapid pace and the need to take immediate steps to conserve energy will further complicate the problem initially. There are no instant cures. A careful and balanced policy approach is required. It will take time to yield full·results. There is, however, no prospect of a long and deep economic downturn on the· scale of the 1930 •s •. more 7 l1AJOR ELElfEHTS OF THE PRESIDENT •s ECONOMIC AND TAX PROGRAM

I. A $16 ~illion Temporary, Anti-Recession ~ R'.'eCIUCtion. This major reduction in tax.es proposed ror individuals and businesses is designed to restore consumer confidence and promote a recovery:. of production and employment. The recession is deeper and more wid~spread than expected earlier, but the tax reduction -- together with the easing of monetary conditions that has already taken place -- will support a healthy economic recovery. The tax reduction must be temporary to avoid excessive stimulus resulting in a new price explosion and congested capital markets. The temporary nature of the reduction is. consistent with the lon~-term economic goals of achieving and maintaining reasonable price stability and raising the share of national output devoted to saving and capital formation. II. Ener3y Taxes and Fees. Energy excise taxes and fees on petro'letiin--a:tia natural gas will reduce use of these energy sources and reduce the nation's need for importing expensive and insecure foreign oil. Removal of price controls from domestic crude oil (together with other energy actions) will encourage domestic oil production. A windfall profits tax would recover windfall profits resulting from crude oil decontrol. Energy taxes and fees are expected to raise $30 billion in new Federal revenues on an annual basis. III. Permanent Tax Reduction J:Iade Possible !!Y Energy Taxes and Fees. The $30-orflion annuai-revenue from energy conservation excise taxes and fees and the windfall profits tax on crude oil would be returned to the economy through a major tax cut, a cash payment for non-taxpayers, and direct distribution to governmental units. Tax reductions are designed to go mainly to low-and middle-income taxpayers.

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(OVER) 8 IV. One Year Moratorium 2!l New Federal Spending Programs. The moratorium on new spending programs proposed by the President will permit the Federal Government to move. toward long-ter.:rp budget respcmsib111 ty and to avoid refueling.inflation when, the economy begins rising again. ·

> V. Budget Reductions. The President will propose significant spendipg reductions in his Fiscal Year 1976 Budget., .The reductions .total more than $17 billion, including $7.~.billion savings from red1J,ct1ons proposed.las.t year and $6 .1 billion from the 5 percent ·ceiling to be proposed on Federal employee.pay increases and on Federal benefit programs that rise automatically with the Consumer Price Index.

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SPECIFIC PROPOSALS ANNOUNCED BY THE PRESIDENT I. · ··A Temporary, Anti-Recession Tax but of $16 Billion. The--president proposed a temporary, tax reduction of approximately $16 billioo to provide prompt stimulus to consumer spending and business investment. The tax cut is divided 75 percent to individuals and 25 percent to corporations, which is approximately the ratio that individual income taxes bear to corporate income taxes. The cuts would be: A. A Tax Reduction for Individuals of $12 Billion. 1. Individuals will receive a cash refund equal to 12 percent of their 1974 tax · · liabilities, as reported on their 1974·tax returns now being filed, up to a limit of $1,000. Married couples filing separately would receive a maximum refund of $500 each. 2. The temporary reduction will be a uniform • 12 percent . for all .taxpayers up to about the $41,000 income level where the $1,000 maximum takes effect, and will then be a progres­ sively smaller percentage for taxpayers above tht;it level. 3. The refund will be paid in two equal installments in 1975 with payments of the 'first installment beginning in May and the second in September. 4. The proposal does not affect in any way the manner in wp1ch taxpayers complete and file their 1974 tax returns. They will file and pay their tax in acc.ordance with existing law, without regard to the tax reduction. Later they will receive their refund checks from. the Intel."nal Revenue Service. Because no cJ1anges in deductions and other such items are_involved, the Internal Revenue Service will;'' be able to determine the amount of the refund and mail the checks without requiring · furtherrorms and computations from taxpayers.

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{OVER) 10 5,. The effect of the tax refund can be illustrated for a family of four as ·follows: Adjusted Present Proposed Percent Gross Income Tax Refund Saving $ 5,000 $ 98 $ 12 -12.0% 7,000 402 48 -12.0% 10,000 867 104 ~12.0% 12,500 1,261 151 ·~12. 0% 15,000 1,699 204 -12.0% 20,000 2,660 319 -12.0% ~0,000 7,958 955 -12.0% 50) 000 11,465 1,000 ~ 8.7% 60,000 15,460 1,000 ~ 6.5% 100;000 33,340 l;,000 .. 3. 0% 200,000 85,620 1~000 - 1.2% Although the taxpayer will not figure his own refund, it is a simple matter for him to anticipate how much the Internal Revenue Service·will be sending him~ by calculating 12 percent of his total tax liability for the year (oh Form 1040 for 1974~.it is line 18, page 1, and on Form 1040A, line 19). B. A Temporary Increase in Investment Tax Credit for Business an<_! Farmers 9f j4 billion. 1. There will be an increase for one year in the investment tax credit to 12 percent for all taxpayers; including utilities (which presently have, in effect, a 4 percent credit). · Utilities will continue to receive a 12 percent · credit for two additional years for qualified investment in electrical power plants other than oil~ or gas-fired facil,itles. 2. This increase in the credit will provide benefits of $4 billion in 1975 to immediately stimulate job-creating investment. (In view of the need for speedy enactment and the .temporary nature of the increased credit, this change does not include the basic re­ structuring Of the credit as proposed on a permanent basis in October~ 1974.)

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3. With respect to utilities, it includes a temporary increase in the amount of credit which may be used to offset income tax. Under current law; not more than 50 percent of the income tax liability for the year ··may be Offset by the. investment credit. Since many utilities have credits they have been ·unable to use because of this limitation; under this proposal utilities will be permit­ ted to use the credit to offset up to 75 per­ cent of their tax liability for 1975, 70 percent for 1976 ~ · 65 percent for 1977 ~ and so on~ until 1980,·when they will in five annual steps have returned to the 50 percent limitation applicable to industry generally.

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(OVER) 12 . ' 4. The 12 percent credit will apply to property placed in serv.ice during 1975 and to property ordered during 1975 if placed in service before the end of 1976. T'ae credit will also be available to the extent of construction, reconstruction or erection of property by or for a taxpayer during 1975, wi.thout regard to the date ultimately placed in,s~rvice. Similar rules will apply to investment in electrical power plants other than oil-or gas-fired facilitie~ for which the 12 oercent credit .will continue through 1977 ...

II. EnerlitY Conservation Taxes and Fees. Energy taxes and tees, In conjunction witn domestic crude oil price, decontrol and the proposed windfall profits tax, would raise about $30 billion on an annual basis.·.. The fees and taxes and related actions (discussed more fully in Part Two of this Fact Sheet) i,nclude: A. Administrative Actions. l. Import Fee -- The President is acting immediate!y~thin existing authorities to increase import fees on crude oil and petroleum products. These new import fees will be modified upon passage of the President.' s legislative package. (a) Import fees on crude oil and petroleum products'will be increased by $1 effective February 1, 1975; an additional $1 effective liarch l; and another $1 effective April 1, for a total increase of $3.00 per barrel. Currentiy existing fees will also remain in effect.

more 13 (b) FEA's "Old Oil Entitlements11 program will be utilized to soread orice increases on crude among all refiners, and to lessen dispropor­ tionate regional effects, such as New , or in any specific industries or areas of human need where oil is essential. (c) As of February 1975, product imports ,,111 cease to be covered by FEA's "Old Oil Entitlements" program. In order to overcome any severe regional impacts that could be caused by large fees in import dependent areas, imported products will receive a fee rebate corresponding to the benefit which would have been obtained under that program. The rebate should be approximately $1.00 in February, $1. l•O in March, and $1. SO per barrel thereafter. · (d) The import fee program will reduce imports by an estimated 500,000 barrels per day and 3enerate about $400 million per month in revenues by Apri.l. 2. Crude Oil Price Decontrol -- To stimulate domestic production and furtner cut demand, steps will be~ .taken to remove price controls on domestic crude oil by April 1, 1975, subject to congressional disapproval as provided by !4(g) of the Emergency Petroleum Allocation Act of 1973. 3. Control of Imports -- The energy conservation measures to lie imposed administratively out­ lined above, the energy conservation taxes outlined below and other energy conservation measures covered in Part Two below, will be supplemented by the use of Presidential power to limit oil imports as necessary to fully achieve the President's goals of reducing foreign oil imports by one million barrels a day by the end of 1975 and by two million barrels before the end of 1977.

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(OVER) 14 lL ..>t~xe~ Pr.opo~u~d. i2. the. Congress ..; The President ~sk~a:. tf1e -Congress to pass within 90 days a co~preh~nsi ...1e energy conservation ta~: program wh;i.ch i'lil.1 raise ·an estimated $30 billion in revenues.on,an annual basis .. The taxes proposed are: - - · 1. - Petroleum .Excise Tax and I~ort Fee -- An excise ta::c on all domesti'C'"Crue oil01' $2 per barrel and a fee on iLwor,ted crude oil and product inports of $2 per barrel. 2 ... ·· Hatural Gas' ,Exci~e Tax ~-· ·~ excise tax ori -.natura+ r;as of. 37¢ per-thousand cubic feet (mcf).,, the equivalent on a Btu basis to the $2 per barrel .petroleum excise taJc and import .a.ee.J: '

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more , 15 3. Windfall Profits Tax -- To ensure that .· the ena of controls on crude oil prices does not result in one sector of the economy benefitting unfairly at the expense of other sectors, a windfall profits tax will be levied on the profits realized by producers of domestic oil. This tax is intended to recapture.excessive profits _, ·which would otherwise be realized by producers as a result.of th~ rise in international oil prices. This tax does not itself cause price increases, but simply recaptures the profits from price increases ·otherwise induced. It wil~, together with .:. the income tax on such profits, produce · revenues of approximately $12 billion. In aggregate, the windfall p~ofits tax is .sufficient to.absorb a11- the profits that would otherwise flow from decontrolling oil .Prices, plus an additional $3 billion. More · sp~~ifically the tax will operate as follows: {a)' A windfall profits tax at rates graduated from 15 percent to 90 percent will be imposed on that portion of the price per barrel that ~xceeds .the producer's adj.usted base price '$nd'therefore represent~ a windfall profit. the initial "adjusted base price" will be the producer's ceiling price per barrel on December l, 1973 plus 95 cents to adjust for subsequent increased costs and higher price levels generally. Each month the bases will be adjusted upward on a specified schedule, wh~ch will gradually raise the adjusted base price to reflect long-run supply conditions and provide the incentive for new investment in petroleum exploration. Percentage deple­ tion will not be allowed on the windfall

(b) The windfall profits tax rates will be applied to prices per barrel in excess of . applicable adjusted base prices as follows1

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(OVER) 16 Portion ?i' Erice Qer Amourit of tax par.rel :fn ex~ of ------basJ! and subject to tax Less than $0.20 15% of amount within bracket $0.20~ Und~r $0;50 $0~03 plus 30% of amount within bracket $0.50~ under $1.20 $0.12 plus 60% of amount within bracket $i. 2p, · l.lnder $3. 00 $0~54 plus 80% of amount within bracket $3.00,and over $1.98 plus 90% of amount within bracket

(c) Th~ windfall profits tax does not include7. a i1plowb~ck' 1 provision; nor '.does it contain exemptions fof classes of prod,uction or producers. It does 3 howe~e~, ~nclude the limitation that·the amount subject to tax may not exceed 75 percent of the net income from the barrel of crude oil. The tax will be retroactive to Janugry 1. 1975. (d) The windf".all profits ta:x reduces the base for the.depletion allowance.

more 17 III. Permanent Tax Reductions and Payments to cion­ Taxpayer_! Haae Possible ~ ~nergy Conservitl'On Taxes. . ... · · Of the $30 billion in revenue raised annually by the proposed conservation taxes outlined above, about $5 billion is paid by governments through the higher costs of enerey in their purchases. This $5 billion includes:

·. · ~3 billion ·by the Federal government . . v2 billion by state and local governments.

The President is proposing to the Congress th~t $2 billion of the revenues be peid to State and local ·governments, pursuant to the distribution formulas applicable-to general revenue sharing. The other $25 billion will be returned to the economy mostly in ·the form of ta~ cuts. As in the case of the ~emporary tax redµction, this permanent change will be divided between indi­ viduals and corpot'~tions on a 75-25 pei;-~ent basis, about $19 billion for individuals and about $6 billion for corporations. Specifically, this.would include: A. Reductions for Individuals in fi{-75 -- Tax cuts tor individuals will be-ac eved in two ways: (1) through an increase in the Low Income Allpwance and (2) a cut in the schedule of tax ra-ees. In this way, tax-paying individuals will receive a reduction of approxi~tately $16 1/2 billion, with proportionately larger cuts going to low-and middle-income families. The Low Income Allowance will be increased frou the present $1,300 level to $2,600 for joint returns and 02,000 for sinsle returns. That will brine the level at which returns are nontaxable to what is approxinately the current "poverty level" of $5,600 for a family of 4. In addition, the tax rates a!,'.)plicable to various brackets of in­ come will be reduced. The aggregate effects of these changes are as follows:

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(OVER) 18 (1~75 L~vels) .($billfons) · Adjusted Income Tax Aiiiount of Percentage Gross Income Paid Under Income Tax Reduction in Class . Present .Law Reduction : Income Tax ($000) IC ( •••••••• 7o ••••••• , •• 0 - 3 3 • 25 -83.3% 3 - 5 i.a - 1.20 -66.7 5 - 7 4.0 - l.96 -49.0 7 10 8.9 - 3.38 -38.0 10 15 2·1. 9 4·. 72 -21.6 15 - 20 . .22 .. 8. - 2 .. 70 -11.8- 20 - 50.. , 44.4". ~ 2.• 15 - 4.8 50 100 ·: .13. 5 - ·.11 - 0.8 100 and over ' 13.3 .03. - 0.2

Total 130~9 -16.50* -12.6 *Does not include payments to nontaxpayers The effect of these tax changes can be illustrated for a f alflily of 4, as follow~: . Adjusted Present Hew Tax Percent Gross Incor:ne Tax:Y Tax .Sav!n& Saving $ 5,600 $ 185, $ 0 $185 100.0% 7,000 402 110 292 72.6 10,000 867 518 349 40.3 12,500 1,261 961 .300 23.8

15,000 . ~ . . l .• 699 .. 1,478 . 221 13.0 .. 2.450· ..., . 20,000 2~660 ; .. 210 7.9 30,000 ·.·. 4, 933 '4,337 . 151. 3.0 40,000 7,953 , 7, 020 130 1.6

I/ Calculated assuming Low Income.Allowance· or itemized deductions equal to 17. percent. of· income, whichever is greater. ·B. Residential Conservation Tax Credit {Discussed in the Energy Section of this-rict Sheet). The President seeks legislation to provide incentives to homeowners for caking thermal efficiency improve­ ments, such as storm windows and insulation, in existing homes. This measure, along with a stepped-up public information program, could save the equivalent of over 500,000 barrels of oil per day by 1985. Under this legislation: more 19 1. A 15 percent tax credit retroactive to January l, 1975 for the cost of certain improvements in thermal efficiency in residences would be provided. Tax credits would apply to the first $1~000 of expenditures and can be claimed during the next three years. 2.· At least 18 million homes could qualify for these tax benefits" estimated to total about $5oo·million annually in tax credits. c: Payments to Nont~xpayers of $2 billion. The final component of the $!9 billion distribution to individuals is a distribu­ tion of nearly $2 billion to nontaxpayers and certain low-income taxpayers. For this low-income group, a special distribution. of $80 per adult will be provided, as follows: 1. Adults who would pay no tax,even without the tax reductions in A above.1 w1.ll receive $80. . 2. Adults who receive less than $80 in such tax reductions will receive approximately the differertce. 3. Persons not otherwise filing returns but eligible for these special distributions will make application on simple forms provided by the Internal Revenue Service on which they would furnish their name.1 address~ social security number., and income,. · ·4. For purposes of the spedial distribution, "'adultsa are individuals who during the year are at least 18 years old and who are not eligible to be claimed as a dependent under the Federal income tax laws. 5. Since most taxpayers will receive their 1975 income tax reductions in 1975 through reductions in withholding on wages and estimated tax payments ;i the special distribu-­ tion to non-taxpayers and low-income

more {OVER) _:, .. •. "> Y': ).,.•-. - .. I . . . ·:. ;. '

. ~. .) . 20 ·,·:f'.'. ·" ' '1. .. • .. . .. : ~ ·. ' ~. ' ' ' ~ , . taJ1:paye.rs will ~also· begin :lrL19 75. '.i l .;l:t< :1,s, ant~.c:~pated that; di~bu:r.~ement, .. - .:.·?:.~: 'L

. , ~' D1.r ;,.; ... :JI'a~ . Reducti:o;ns t:<:0r ·Oorpor.at ioqs. The •• · .:'..' .:• · 1.. • :cornol!ate -~t:~ ..w:i:J.1.·be ~-e.:Q.uc.ed by 6

. · :. xi:.. • p~~o,~~g~; .. points·3 · ~rr~c.ti;yely lowering the corporate rate from 48 percent to 4.2 p-eJ"c.~nt · for, 19 7 5 • ·· T.he :xesul ting ·. b.enefit lil 1975 is ,,es~im&~~d at about $6. billion,. · ·.<' ....

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·t •• ' ' ·. ··.: ·"- .~~- . : . .rv.. · Morat.orium on New Federal §.pe.n.di~ irograms . .. The President annou~ced that h~: wou d propose no new Federal spending programs except for . energy. . He al.~o ~ndicat~d -that he would not . hes.i.tate tq vet!o any new . spe~,ding programs passed by the Congress. The need for the moratorium is demonstrated by preliminary ·FY 1976 Buqget· .estimates.: . r. Fiscal Years·· Percent Change 1974 1975 -1976 I5/7ll · 1-011s r .Revenues 264.9 280 .3QJ 5.7% 8. 2% ~ J ,· . . Outlays 268.4 314 17 % 11.1% Defic.it ·• 3 .,5 32-34 4§~~7 NOTE: Estimates for 1975 and.1976 are subject to · a variation of $2 billion in the final budget.

• • § v. ·.Budget. ReQ..uct.ions. · .. The. bl.ilQ.gEtt :f,igures sqown above assume that · ·signi.f1.ea11t; ·b\itlg~t; red11c'4.ions prop.osed by the President are effected. Including re­ duct.i;ons propo~~~ J:,n ~ :-.s~~ri,e$: .i of special .,;\ ,, messages s.~nt: ''t-Q(L~tb:e :-:l.a·st,, :e.e:.~Hl.iOn or Col"\ ~ress ~ . these. bu.Q:g~t; ~l';E}d:1;.~CJ.1;;'i;,Q.U&i r.tO;ti

more :- ~ . ·- ~ ' ' . \ ... 21 The following summarizes reductions in 1976 spending to be included in the upcoming budget:

(Outlays in billions) Effect of budget reductions ·proposed last · year (including administrative actions) • • • • • $8.9 Amounts overturned by the Congress • • • • • • • . ' . . -1.l . J Remaining savings • • • • • 7.8 Furth.er reductions to be proposed: Ceiling of 5% on Federal pay and programs tied to the CPI • . • . • • • . . • • 6.1 Other actions planned • 3.6

Total reductions • • • • 17.5

more (OVER) 22 The following lists those programs to which the 5% ceiling will apply and shows spending amounts for them: , . ···. " . Effect of .5% Ce..f.ling on Pay Increases and Programs Tied to CPI (Fiscal year estimates; Dollars in billions)

1976 Outlc~s ·. Difference 1975 11.tiiout ·· · · · · ith 1975-1976 Programs Affected Outlays ceiling ceiling (with ceiling) · Social security . . 64.5 74.3 7.1.8 +7.3 Railroad retirement • • • • 3.0 3.4 3.3 +0.3 Supplemental Security Income ••••••• 4.7 5.5 5.4 +0.7 Civil ser\rice and military retireoent paye.en ts .~ . .. 13.5. 16.2 14.. 9 +1.4 Foreign Service retirement ••• .1 .1 .1 * Food stamp program ...... 3.7 3.9 3.6 -0.l Child l nutrition • • • • 1.3 1.8 1. 6 +0.3 Federal salaries: i:iilitary . . . .. 23.2 23.l 22.5 -0.7 Civilian ..... 35.S 38.9 38.0 +2.5 Coal miner benefits ••••• 1.0 1.0 1.0 * Total .. .. . 150.5 163.2 162.1 +11. 7

* Less than $50 million. The 5% ceiling will take into account increases that have already occurred since January 1, 1975. Under the plan, after June 30, 1976, adjustments would be resumed in the same way as before the establishment of the 5% ceiling. Rowever, no catchup of the increases lost under the ceiling would take place. more 23

' :; ". SUMMARY OF THE BUDGET IMPACT OF THE NEW ,_TAXES AND FEES AND THE TAX CUTS • ' · ·------~ l l ~ • t ~·.. ·-. ... The following table summarizes·, the· estimated1 direet budget impact~ on ·a full-year--effect,ive basis,.· of. the tax and related changes proposed by the President to deal· with·;the. economic and energy :situations: · .,

Revenue Ra.is'ing Meas~!!_ Estimated Amounts ($·.billions) Oil excise tax and import fee + 9 1/2 Natural gas excise tax .· + 8 1/2. Windfall Profits tax ii' +12 Total ., .+30·

:· .-- , .. •:,

"

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" J •

..

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more'·« , (OVER) 24 Estimated Amounts Revenue Disbursin5 !foasu:res. . ($ billions) Energy rebates: Income tax cuts, individuals · Residential tax credit Uontaxpayer distribution ... 2 · E:orporate, tax .cut· - 6 State and local governments - 2 Federal government costs - 3 Subtotal -30 Temporary economic stimulus: Individual tax refunds -12 Investment credit increase - 4 Subtotal -16 Total Revenue Disbursing Measures 46 The tax and related changes will go into effect at different times, but all of them during the year 1975: The energy conservation taxes are proposed to go into effect April 1. The increase in import fees would go into effect $1 per barrel February 1. To $2 per barrel March 1. To $3 per barrel, if the energy taxes have not been enacted, April 1. The windfall prof its tax on crude oil would be effective as of January 1, 1975. First payr~ents of the tax would be made in the third quarter. The permanent tax cuts for individuals and corporations made possible by the revenues from the energy conservation taxes would be effective as of January 1, 1975. The changes in withholding rates for individuals are expected to so into effect on June 1. The withholding changes will be adjusted so that 12 months reduction is accomplished in the 1 months from June through December.

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The tax credit for energy···Saving improvements to existing residences would go into effect as of January l~ 1975. · The special distribution to nontaxpayers is expected to be paid out in the summer of 1975. The $2 billion distribution to State and local governments would be effective with the second quarter of·1975. The temporary anti-recession tax cut for individuals will be paid out in two installments~ in the second and third quart~rs. · The one-year increase in the investment tax· credit becomes effective retroactively to January 1, 1975. The timing of the various changes suggests a pattern of direct budget changes'as follows. The timing of the· economic stimulus or restraint will depend:, as wel,l,, on such factors as the indirect effects of the budget changes, the timing of the pass--through of higher energy costs to final users.:r the extent to which the changes· are anticipated~ and a variety or monetary·and financial developments that arise out of these changes. · Timing of Direct Budget Impact ($ billions) Calendar Years 1915 1970 I II III IV I II III IV Energy Taxes +0.2 +CT +12.6 +r-:o +r:o +7 .5 ~7.? +7.5 Return of Energy Revenues to Economy Tax Reduction .o -3.2 .,. 9.0 -9.0 -5.6 -7.9 -6.3 -6.4 Nontaxpayers - 2.0 -2.0 S&L Gov'ts .o .... o. 5 - 0.5 •.,;Q. 5 -0.5 -0.5 -0.5 -0.5 Federal Govt. .o .o - o.a -0.7 -0.8 -0.7 -0.8 -0.7 Temporary 'rax Cut- .0 -6.l - .'7. 9 -OA) -0.8 -0.9 0 0 Net Effect +0.2 -5.7 .;... 7. 6 ·~3. 2 -0.1 -2.5 -2.l -0.1

more (OVER) 26 INFLATION IMPACT Both major parts of the tax package require inflation impact analysis. The excise taxes on crude oil and natural gas, combined with the tariff and decontrol of 1 prices of both ' old\I oil and new natural gas J will add to the general price level immediately. The consumer price index is expected to rise by about two percent when these tax and price increases go into effect. However, this increase has a one-time impact on the price level that, with exceptions in some areas~ should not add materially to inflationary pressures in future years. The inflationary impact of the $16 billion anti·-recession tax cut is more difficult to assess. While some eco­ nomists may argue that a tax cut will add to the rate of inflation during the year ahead, others would contend that under present economic conditions,, with unemploy­ ment high and many factories operating well below capacity, the predominant effect of the tax cut will be to stimulate spending, and that additional spending will have only a slight impact on prices. Whatever the precise price impact of this $16 billion tax cut during 1975, the most important fact about it from the standpoint of inflation is that it is temporary. With the recession still under wayJ the rate of inflation will be coming down -- it will be too high, but never­ theless moving in the right direction. After the economy gets well into recovery) however, too much stimulus would be sure to reverse the slowing of the inflation rate and, indeed, start a new acceleration. Thus. the tax stimulus must be temporary rather than permanent. The President has declared a moratorium on new Federal spending programs for this same reason. Budget expen 4 ditures are rising rapidly this yearJ in part; because of programs to aid the unemployed. That: is acceptable and highly desirable in a recession to relieve the burden on workers who are affected. It is also desirable because spending under those programs phases out as the economy recovers and unemployment falls. The increased Federal spending is only temporary. Over the long-term, however; both Federal spending and lending have been rising much too fastJ a fact that accounts for a substantial part of our current economic problems. A new burst of expenditure programs cannot

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help the Nation recover f~om the current recession -- the impact would come much too late ,~-~ but it would surely do much inflationary harm as the economy returns to prosperous conditions in the years ahead. Therefore, at the same time that taxes are being reduced to support a healtby recovery, policies that would revive inflationary pressures must be avoided after the recovery is underway. The size of currently projected Federal budget deficits precludes introduction of new spending programs now that would raise inflationary pressures later. For this reason, the President requested that no new spending programs, except as needed in the energy area, be enacted so that we can regain control of the budget over the long-run and permit a gradual return to reasonable price stability.

PRESIDENTIAL PROPOSALS OF OCTOBER ~ 1974 RESUBMITTED FOR CONGRESSIONAL ACTION -- In addition to the comprehensive set of economic and energy policies discussed in the State of the Union Message, the President asked that the new Congress pass quickly certain legislative proposals originally requested in his October 8, 1974, message. Those proposals would: 1. Remove restrictions on the production of rice, peanuts, and extra-long-staple cotton. 2. Amend P.L. 480 to waive certain restrictions on shipments of food under that Act to needy countries for national interest or humanitarian reasons. 3. Amend the Antitrust Civil Process Act to strengthen the investigation powers of the Antitrust Division of the Department of Justice. 4. Eliminate the U.S. Withholding tax on foreign portfolio investments to encourage such investment. 5. Allow dividends paid on qualified preferred stock to be an authorized deduction for de-" termining corporate income taxes to increase incentives for raising needed capital in the form of equity rather than debt. 6. Create a National Commission on Regulatory Reform and take prompt action on other reforms of regulatory and administrative procedures that will be recommended in the future. more (OVER) 28

7. .Strengthen .our financial ins.ti tut ions and provide a riew tax incentive for investment in res1<1en 1 mo:rtg~geo . 8. Permit more competition between different modes of surface trahsportation (The Surface Transportation Act).

9. Amend th~ Employment Act of 1946. to make explicit the goal of price stability. (Substitute ato promote maximum employ­ ment , maximum production, and s't;_abiiity of the general price level ~ in place of the present language> Ht;o pr.omote maximum employment :. produetion 'and purchasing power.u)

•.

.,

..

more .. 29

I '• , •' ; { , I I t , , ·, ·L ..

The Presiaent's Energy Rro~ram . . (includin0 energy taxes and fees)

The President's State of the Union Address outlined the Uation~s energy outlook, set forth national energy policy objectives, and described actions he is takin3 imtlediately and indicated proposals he is asking the Congress to pass.

BACKGrtOUiJD ' t I Over the past two years, progress has been made in conservinB energy, expanding energy .~l and impr.ovin3 Eederal government energy orcanization. Despite such accomplishments, we ...have not succeeded in soiving fundamental problems and our .:;ational energy situation is critical. Our relianc.e· on foreign sources of petroleum is contributing to· bo.th inflationary and · reces­ sionary pressures in the United States.. Uorld economic stability is threatened and several industrialized nations dependent upon inported oil are facing severe economic disruption. With respect to the U.S. ener3y situation: Petroleum is readily available from foreign sources -- but at arbitrarily hi~h prices, causinr, massive qutflow ·of ,dollars, ·and at the risk of 1nc%"easilte;. our UatiG>n's vulnera­ bility to severe econouic disruption should another eubargo be imposed. Petroleum imports remain at high l·evels even at present hirh prices.

Dome,stic oil production continue~ to decline as older- fields. ai:e depleted and neu fields ar;e years from :prod®tion; J.C million barrels per day in 1974 cocp.ared to 9.2 million in 1973. rrotal. u. s. petroleum consumptiqn is. .increasing, .. ,.although at slower rates due to higher prices.

Hatural zas shortages are fqrc. ~b ,cur.taillllent of supplies to I.Jany industrial firms and denial of service to new residential custooers. (14% expected this winter versus 7% l~st year.) This is resulting in unempl.oycent, reductions in the production of fertilizer needed to increase food supplies, anc increased deoand £or-_a1.ternat.ive fuels ~ly import~d--oil. more (OVER) 30 Coal production is at about the same level as in the 1930's. Nuclear energy accounts for only l .,Percent of total energy supply :aild new -plants are being delayed, postponed or cancelled.

Overall energy co~sumption is beginning ~o increase . . ~ ... again~

... .,jj,., U ..:s. vulnerabillty to economic and soc·:1a:1 :tmpact from an embargo increases with higher imports and will contiriu~ to -db so until we'reverse current trends, ready standby plans~ and increase petroleum storage. Economic impacts of the fou·r-fold increase ·ltn- OPEC oil prices include: · · -- Heavy outt'low of u .s. dollars (-an.a , in erre·ct, jobs) to p'ay for growing oil ·imports ~- about $24:b'illion in 1974 compared to $2. 7 billion· ,in 1910 ,, Tremendous balance of payments deficits and possible economic collapse for those nations of Europe and Asia tbat must '-deperid up.brt · expensive impo_rted oil as a _primary energy sourc·e. ' '·· ......

Accn.unula:tidb of billions o·:f dollars Of surpJ:~s revenues' i·ri ·oiil' expdr·ting nations --- appr9-;i5:1- · matel}' ··$6'0 billion id: 1'974 a1o·ne.

I • U. S • ENERGY OUTLOOK u - \

I. Near--Term ( 1975-1977) : In the next 2·-3. years J there are only a rew steps that c.ati' be tak~n to lncr~ase domestic energy supply particul~rly ,du~ ·to the lohg'lead time for new production. Oil itfQc1r'ts "w!;ll thus coptinue to rise unless :demand i 1s curbed;. ' II. Mid-Term (1975-1985) . In the next t~n years~ there is greater fie-xibflity. A n\lmber· o~" actions c'an be ·taken to increase dbmestic suppiy ~ coriyertl fr6m fotaeign oil to domestic coal and nucl·ear energy.. and. , reduce"' demand if the Nation takes tough actions. Vulnerability to an emQar·~o can-· ·be e~.ltri~h~ted. ·

more r 31

III. Lohg~erm (Beyond 1985): Emerging energy sources can play a bigger role :in supply,1.ng. U.S .• needs -- the results of the Nation's expanded en¢rgy research and development program. U. s. independen

NATIONAL ENERGY POLICY GOALS AND PRINCIPLES ANNOUNCED BY THE PRESIDENT· · -. . . . · -

I. Near-Term (1975-1977): Reduce oil imports by 1 ~illion barrels per day by the end of 1975 and.·2 million barrels by the end of 1977, through immediate actions to reduce energy demand and increase domestic supply. (A) With no actt9n, imports ,,ould be about 8 million barrels per day by the end or 1977, more than 20 percent above the 1973 pre-embargo levels • . ' , (B) Acting to meet the 1977.goal.will reduce imports below 1973 lev,els, assuring reduced vqlnerability from an embargo and greater consumer nation cooperation. (C) More drast·fc short-term re.duct·ions would have unacc-eptable 'economlc iropacts, . ,· . II. Mid-Term (197.5-19.85); Eliminate vulnerability by achieving the' capacity for full energy indepenc:lence by 1985. This means 1985 imports of no more than 3-5 million barrel~.. or oil per day, a.11 of wtiich can be replaced immediately frbm a strategic storage_ system and managed with emergency measures.

(A) With no action, oil imports by 1985 could. be reduc.ed to zero at prices of $11. per. barrel. or more :.- or they coul.d go substantially higher if world oil prices are reduced (e.g .. , at $.7 per barrel, U.S. consumption could reach 24 million barrels per day with imports of above 12 million,. or.above. 50% of the.total.)

(B) The U.S. anticipates a ~eduction in world·oil prices over the. n.ext s~;ireral years. Hence, ·plans and policies must· be estabiished to achieve energy independence even at lower prices -- countering the normal tendency to increase imports as the price declines. more (OVER) 32 (C) Actions to meet the 1985 goal will hold imports to no more thari 3"5 million barrels. per day .. even at $7 per barr~l prices. Protection against an embargo of the remaining imports can then be handled most economically with storage ~nd standby emergency measures. · III. Long-Term (Beyond 1985): Within this century> the U.S. should strive to develop technol9gy and energy resources to enable it to supply a si~nificant share of the. Free World's energy needs.

(A) Other consuming nations have insufficient fossil fuel resources to reach domestic energy self-sufficiency. (B) The U.S. can again become a world energy ,supplier and foster world energy price ~tability --· much · the same as the nafion did prior to the 1960 's when it was a major supplier c}f world oil. IV. Principles: Actions to achieve the above national energy goals· must be basea upon the . following principles: ·

Provide energy to the American consumer at the lowest possible cost consiste.nt with our need for secure energy supplies. · Make enerf!,Y decisions consist'ent with our overall economic goals. Balance environmental goals with energy require·­ ments. Rely upon the private sector and market forces as the most efficient means of achieving the Nation•s goals~ but act through the government where the private sector is uhable to achieve our goals. · · Seek equity among all our citizens in sharing 0f benefits and costs of our energy program. Coordinate our energy policies with those of other consuming nations to p~omote interde­ pendence, as well as independence. more 31

III. Lobg~Term (Beyond 1985): Emer~ing energy sources can play a· bigger role ·in supplying U.s .. needs -- the results of the Nation's expanded energy research and development program. U. S ~ independence .<:;,;;tn be maintained •. New technologies are the most s·1·gnificant opportunity for other consuming nations with limited domestic resources.

NATIONAL ENERGY POLICY GOALS AND PRINCIPLES ANNOUNCED BY THE PRESIDENT· . · -...... -

I. Near-Term (1915-1977):. Reduce oil imports by 1 ~illion barrels per day by the end of 1975 and.2 million barrels by the end or 1977, through immediate actions to reduce energy demand and increase domestic supply.

(A) With no· acti<:>n, imports· .~ould be about 8 million barrels per day by the end of 1977, more than 20 percent above the 1973 pre-embargo levels. ' . \ ; (B) Acting to meet the 1977 goal.will reduce imports below 1973 lev,els,assuririg reduced Vt!lnerability from an embargo and greater consumer nation cooperation. ( C) More d.rast·:ic ,short-term reduct-ions would have unacc-eptable economic impacts •. ,· II. Mid-Term (1975-1985); Eliminate vulnerability by achieving the' capacity for full energy independ.ence by 1985. This means 1985 imports of no more than 3-5 million barrel~ of oil p~r day,. a.11- of wl'lich can be replaced immediately from a strategic storage. system and managed with emergency measures.

(A) With no action, oil imports by 19B5 could be reduc.ed to zerc:> at prices of $11. per. barrel or more -:...- or they coul.d go substantially higher if w·orld oil prices are reduced (e.g., at $7 per barrel, U.S. consumption could reach 24 million barrels per day with imports of .­ above 12 million,_ .or above- 50% of the -total.)

(B) The U.S. anticipates a reduction in world·oil prices over ~he. next s~~eral years. Hence, ·plans and policief:i muf:jt be established to achieve energy independence even at lower prices -- countering the normal tendency to increase imports as the price declines. more (OVER) 33 .. ACTIONS ANNOUUCED TO!lAY UY THE PRESIDENT I. ACTIONS AUUOU'j.iCtD '1Y 'lilt ~.· ts I:>EHT TO MEET. ltEAR/l"t~GOAl.1[119/5;.~7 - - ·------. To c.eet the national goais, the President oui:lined a com· prehensive program of legislative proposals to the Congress which he requested be enacted ~rl.thin.·90 days and a~nistra­ tive actions that he will begin. in~lenenting itlnediately. The legislative package is r.10re effective and equitable than the administrative program, but the President indicated that the seriousness of the situation def.landed i~1ediate action. These actions will reduce Qve~all energy de~and, increase domestic production, ~ncrease conversion to. coal, and reduce oil iuports. They include:

1 .. ~t Fee -- Because of the seriousness or-tlie probleo and because time is required for Coneressional action on his legislative proposals, the President is actl~r. il:Dediatel" within existing authorities to increase the import fees on crude oil an.4 ..petroleur!l products. These new i.Llport fees would be uodified upon passage.of th~ :?resident's legislative pac~age. (a) .ltjport .fees on crude oil and petrolewn products under th~ authori~y of the Trade Expan·· sion Act Qf 1962, as amend~~; will be increased by $1 effective .February 1. 1975, an additional $1effective1'1a~ch l;_and.~nother $1 effective April l, for a total increase of $3.00 per barrel. Currently existitig 1;ees·will also rt!µain _in e-ff~ct. (b) FEA's 10ld Oil Zntitleaents' pror,ran will be utilized to sp.read p~ice increases on crude among all refiners and to lessen disproportionate reg;onal effects, par· ticularly in the northeast. (c) As, of' Febniary i975, p~oduct inports will cease. to be c;ov.ered by FEA' s "Old Oil Entitlet~en·ts·' progran. In order to overcome any seve~.e regional iop.acts that .could be caused by _l~rse fees in iupor~ . dependent areas, inported products will·receive a rebate ·corresponding ~o the benefit which would have been obtained under that ~rogran. Tne rebate should be approxinately -11. 00 in February._ $1. 40 ~ · iarch, and ~ 1. 80 per barrel in ~pril. · - (d) This L"lport fe·e prozran would reduce imports by about 500,000 barrels per day. In April it uould generate about ~400 Dillion per nopth in revenues. more (OVER) 34 2. Backup Import Control Program -- The energy conservation measures and tax proposals will be supplemented by the use of Presidential power to limit oil imports as necessary to aeh!.eve the near-term goals. ',· ·3.· Cttude Oil Price Decontrol -- To stimulate ·,production and further cut demand, steps · will be . taken to remove price controls· ·on domestic crude oil by April 1, 1975, subject to congr~ss16na1 disapproval as provided by §4{g) of the Emergency . Pet?>oleum· Allocation Act of 1973. ·

4. Increase Public Education 2n. Ener~y . Conservation -- Energy Resources Council· will step. up its efforts to provide i~for­ matioh on energy conservatiori':methods ·and benefits.

{B) Le~is1afive Proposals 1. · ·comprehensive· Tax and Decontrol Program ' · · The President askedtqe Congress ·to pass ·within 90 days a comprehensive legislative package which ciould lead to redtiction of oil imports of 900~000 barrels per day · · · by 1975 and l. 6 million barrels. by 1977. ).verage 'oil prices would r:tse a.1:1out $4 .oo 'per barJ?el of·'$ ~10· per: gallon: . The package '· which will raise '$30 billion in revenues 1 · on an annual b~sfa 'includes: , ' '.:·ta) Windfall Profits Ta'.x _.;_''A :t'ax on all domestic crude oil to c·apture the windfall profits result1ng from price de~ontrol. The ·tax would take· 88% ,6.f ttie ,windfall 'profits on crude ofi ·arid wcilil.Q. '~,hase out ·over several years. 'rh~ t,a.~ .'.Wq4l.d be retroactive to January 1, 1915< . ' .. " '· . (b). Petroleum Excis.e Tax 5!!£ Im2ort Fee -- An excise tax on all domestic crQde oil of $2 per barrel' and a fee on imported ·crude oil. and product im'Ports' o.f $2 per barrel. The· new, administra~ively established import fee of $3 on crude oil would be reduced to $2.00 and $1.20 fee on.products would be ' increased to $2.00 when the tax is enacted. 'The product import fee wou:,_d ~eep the excise tax from encouraging foreigri refining and the related lo~s of Jobs, to the U.S.

more. . 35 (c) New Natural Gas Deregulation -- Remove Federal J.nter.st.ate price regulation on new hatural gas to increase domestic production .and reduce demand for scarce natural gas supplies •

. ( a) Natural Gas Excise Tax ~- An excise tax on natural gas or 37¢ per thousand cubic feet (mcf), which is equivalent on a Btu basis to the $2 per barrel petroleum excise tax and fee. This will discourage attempts to switch to natural gas and acts to reduce natural gas demand curtailmen.ts. · Since the usual results of gas curtailments is a switch to oil, this will limilt the growth of oil imports•: 2. Elk Hills Naval Petroleum Reserve. The President· is asking the Congress to permit production of the. Elk Hills Naval Petroleum· Reserv~ (NPR #1) under Navy ·control .. Production could reach 160,000 barrels per day early in 1975 and 300,000. ~arrels per day by 1977. The oil produced would be used to top off Defense Departnent ·storage tanks, with the remainder sold at auction or exchanged for refined petroleum products used by the Department of Defense. Revenues would be u$ed to finance further expl,oration, deyelopment and production of the Naval petroleum Peserves and the strategic petroleum storage. · 3. Conversion to the Use of Domestic Coal. The President rs-askingthe Co'lgrees to amend the Clean Air Act and tlle Energy Supply and Environmental Coorjination Act of 1974 to.permit a vigorous p;rogram to make greater·use of domestic coal to reduc;e. .the. need ~tor oil. ThLs program would' reduce.th~ need for oi~ imports by 100,Q.QO barr,elsper day tn 1975 and 300 ,ooo.'. o·arrels. in. 1977. T:'lese amend­ ments would 'extendFEA's au:thority to grant prohibition orders f'J:'om 1975 to 1977, prohibit powerplants early in the planning process from burning oil and gas~ extend FEA enforcement authority from 197~ to 1985, and make clear that .coal burning

more (OVER) 36

installations that had originally planned to convert from coal to oil be elieible for compliance

II. ACTI.:'.>lJS Al·mOUl'-iCED BY THZ PIIBSIDEHT TO HEET ~1ID-TE!"J.1 GOALS (1975-1955) - - . - - These ections are designed to meet the goal of. achieving the capability for energy independence by 1935. The actions include measures to increase domestic energy production (including measures to cope with constraints and strike a balance between environmental and enerzy objectives), reduce energy deL'land, and prepare for ariy future emerGency resulting from an embargo. . (A) Supply Actions

l. Naval Petroleum Reserve Ho •. t., (Letislative 8roposal) -- Tne President is ask ng the ongress to authorize the exploration, de­ velopm.ent and prodtiction of UPP..-/} in Alaska to provide petroleum. for the domestic economy, with 15-20% earmarked for military needs and strategic storage. · l'he reserves ·in UPR-li 'which are now· largely unexplo,red could pro­ vide at least 2 million barrels of oil per day by 1985. Under the legislative proposal: (a) The President would be authorized to ·explore, develop and produce 1:-WR-l}. (b) ·The Governnent's share of production (approximately 15-20%) would be used to help finance the strategic storage system and to help.fulfill military petroleum. requirenents, ·Any other receip~s go to the United St:ates Treasury as miscellaneous receipts. · ·

more • 3 7 2. OCS Leasine !Administrative) -- The President reaffirmed h s intention to continue an aggressive Outer Continental Shelf leasing policy, includin~ lease sales in the Atlantic, Pacific, and Gulf of Alaska. Decisions on individual lease sales ~Till await completion of appropriate environ.~ental studies. In­ creased OCS leasing could add domestic pro­ duction of 1.5 ~illion barrels of oil and additional su?plies of natural gas by 1985. There will be close cooperation with Coastal states in their planning for possible increased local developoent. Funding for environmental studies and assistance to States for planning has been increased in FY 1975.

3. ?educing Domestic ~ Price Uncertaintt (Le~islat!Ve Proto~ -- te~islation wll be requested aut or1z1ng andvrequiring the President to use tariffs, import quotas, import price floors, or other measures to achieve domestic energy price levels necessary to reach self-sufficiency goals. This legislation would enable the President to cope with possible large-scale fluctua­ tions in world oil prices.

Clean Air Act Amendments ~Le&islative protos~ -==-1n addition· to the anendoents out in~earlier for short-term goals, the President is asking for other Clean Air Act amendments needed for a balance between environmental and energy goals. These include: (a) Legislative clarification to resolve problems resulting from court decisions with respect to significant air quality deterioration in areas already neeting health and welfare standards.

(b) Extension of col"lpliance dates throu~h 19&5 to implement a new policy reearding stack gas scrubbers -~ to allow use of intermittent control systems in isolated power plants throu3h 1985 and re•:ruiring other sources to achieve control as soon as possible.

more (OVER) 33 (c) A pause for 5 years (1977-1981 model years) for nationwide. auto emi-ssion standards at the current caiifornia levels for hydro­ carbons (0.9 grams per mile) and carbon monox·ide Cf· grams per mile), and at 1975 standards (3.1 grams per mile) for ox~des of nitrogen (with the exception of California which has adopted the. 2.0 standard). These standards for hydrocarbons (HC) and carbon monoxide (CO) are more stringent than now required nationwide for 1976 model year's cars. The change from the levels now required for 1977-1981 model years in the law will have no significant impact on air quality standards, yet they will facilitate at.tairunent of the .goal of 40% · increase in auto fuel efficiency by the 1980 model year.

( a) ·EPA Will shortly begin comprehensive hearings on emission controls and fuel economy which will provide more detailed data'for Congressional consideration. 5. Surface Mining (Legislative proposal) -- The President is asking the Congress to pass a surface mining bill which strikes a balance between our desires for reclamation and environmental protection and our need to increase domestic coal production substan­ tially over the-next ten years. The proposed legislation will correct ·the problems which led to the President's veto of a surface mining bill last year. 6. Coal Leasing (Administrative),-- To assure rapid production from existing leases and to make new, low sulfur coal .supplies available, the President directed the Secretary of the Interior to:

(a) Adopt legal diligence requirements to assure timely production from existing leases. ·

( o) - Meet with Western Governors to explore regional questions on economic, environmental and social impacts associated with new Federal coal 'leases. (c) Design a program of new coal leasing consistent with timely development and adequate return on public assets, if proper environmental safeguards can be provided.

more 32 7. Electric Utilities -- The President is asking ., 'the Congress· for legislation concerned with _- utilities. In recent months·, 60% of planned nuclear capacity and 30% of non- _,' h nuclear capacity additions have been postponed or cancelled by electric utilities. Financing ·problems are worsening ahd State utility ' f commission praetices· have not assured recovery -'',•of costs and adequate earnings. The transition from oil and gas-fired plants to coal and nuclear - h~s. been _slowed gx-eatly -- contributing to ·Pressure for higher oil imports. Actions '' involve: (a) Uniform Investment Tax Credit (Legislative) c - an .incre.ase in the· investment tax credit to eliminate•the gap between·ut111t1es and other industries -- currently -a 4'% ·rate applies to 'Ut·ilities and 7% to others. '

~-+e+· ·Higher -Investment .. Ta:x. cr"edit ·JLe,islative) An ··increase ~in~fii~stment ~tax credit or all industry;; including ut1·11t·1es, for 1 year -­ to 12'%. The 12% rate would be retained for two additional years for all power plants except oi'l and gas-fired f"acilities. (c) Preferred Stock Dividend Deductions (Legislative)--- A change in tax laws applica­ ble to all industries;; includ-ing utilities, which allows deductions of preferred stock dividends for tax purposes to reduce the cost!of capital and stimulate equity rather than debt financing. (d) Mandated Reform of State Utility Commission Processes_ (Le~islativeT ... _ The legislation would selectively reform utility commission practices by: . (1) setting a maximum limit of ·5 .months for rate orservice proceedings; (2). requiring fuel adjustment pass-throughs, including·· taxes; ( 3) requiring that con­ struction wor·k in progress be included in a utility's rate base; (4) removing any rules -prohibiting a utility from charging lower rates for electric power during off-peak hours~ and (5) allowing the cost of pollu­ tion control equipment to be included in tbe rate base. " (e) Energy Resources Council Study (Administrative)~ -- Review and report to the President on the entire regulatory process and financial situation relating to electric utilities and determine what further reforms or actions are needed. ERC will consult with State utility commissions, governors, public utilities and consumers. more (OVER) 40 .. ~. iiuclu!'_ ~owy__ ... .. To accelerate the growth of nuclear poweT which supplies ·only one percent of our energy needs, .the President is pro­ posine, ·in addition to actions outlined above:

(a) ·E]fpedj.~ed ~.!£ensing_ .and Siti!l!'.. (Legislative) A Uue1ear Faillity Licensinr, Act to assure more rapid siting and.- li.censing of nuclear plants.

(b) 1976 Budfe~ ·Increas.!_: (~.!!fil.!lativ{) - ­ An increase o . . ..,4!i..\Iffion in . appropr ations for nuclear safety, safeguards, and waste management. 9. Ene·r.8.!. Facilities ."'£iti.!!S_ (Leg_islative) - ­ Legislation~ioUICT reauce ener8y-Tael.Tity siting bottlenecks and assure sites: ·for needed facili­ ties with proper land use .c.onsiderations: (a)_ The legislation would require that states have·· a. comprehen·sive and coordinated process for expeditious r~vieu and ~pproval of energy facili~y applications; and state authorities which. ensure that final State. energy facility decisions. cannot be. nullified by actions of of local governments. (b) Provision for owners of eligible facilities or citizens to sue States for inaction . .(c) Provide no Fe9eral .role. in caking case by case .siting decisions for the States.

(B) Energy Conservation ~cti_o~

The President anno~ced a nUtlber of enerr;y con·· servation ueasures to .reduce denand.. includine: i . Auto Gasoline Mileage Increases (Administrative) ~Secretary of Transportatfon has obtained written agreements with each of the t:lajor domestic autooobile nanuf acturers which will yield .a 4Q .pe.rcent inprove- oent in fuel efficiency. on a weighted

more 41 average for all new autos by 1980 model year. These agreements are contingent upon relaxation of,Qlean Air Act auto·emission standards. The a.gr.eement provideii.f&r· interim goals, Federal · monitoring.. and public :report1ng of progress. ~; " . ~ · Building Thermal Standards (Lesislati ve) -- The President is' jasking Congress for legislation to establish nat1.on.al mandatory thermal (heating and cooling) efficiency standards for new homes and commercial buildings which would save the equivalent .. of over·one.:..half million barrels of oil per 0 day by 1985. Under this legislation: (a), The Secretary of Housing and Urban Develop­ ment shall consult with engineering, architectural, consumer, labor. industry, and government repre­ sentatives to advise on development of efficiency standards. · · ·

( '6) Thermal standards for one and two-family awel11ngs_w1ll be' developed·~nd implementation would beg1n within one year. New minimum .performance.standards for energy in commercial and residential. buildings would be developed and implemented as s~on thereafter as practicable.

( c) Standard·s wo\lld be implem.ented by State and. local government's through local building codes. · · · · "

(d). The.President, also directe~ the Secretary of .:Housing and· Urban ·Development to include energy. conservatiotl'.staridards ip new mobile home ·construction and ~afe'ty' standards. 3. Residential Conservation Tax Credit -- ~he Pre13.j.dent. Is asking Congress .tor legislation t'o proYide incentives to homeowners for making thermal e£ficiency improvements~ in existing · homes. This measure, alo,ng· with a stepped-up public information program, ·could. save the equivalent of over 500,000 biirrels p~r. day by 1985. Under this .. legis.lati-on:·.. , ..

{a) :A, 15, percent tax credit r~trbact:'- ve to January l,, 1975 for the ·cost ot certain improve­ ments in thermal ef·ficienay in· 'residences would be provided. Tax credits wou~d apply to the f1rst'$!1..,000·of expend1tur~s and· can be claimed during the·next three years. ·

(b) -Improv~ments such as storm windows, and insulation, would qualify for the tax credit.

more (OVER) -

42

4'. Low-Income Ener~ Conservation Progral!l (Legislative) -- The President is proposing legislation to establish a Low-Income Energy Conservation Program to offer direct subsidies to low-income and elderly homeowners for certain energy conservation improvements such as insula­ tion. The program is modeled upon a successful pilot program in Maine.

(a) The program would be administered by FEA, under new legislation, and the President is requesting supplemental appropriations in 1975 and $55 million in fiscal year 1976. (b) Acti.ng through the States, Federal funds would be provided to purchase materials. Volunteers or community groups could install the materials. 5. Appliance Efficiency Standards (Administrative) The President directed the Energy Resources Cpuncil to develop energy efficiency goals for major appliances and to obtain agreements wi:thin six months from the major manufacturers of these appliances to comply with the goals. The goal.is a 20% average improvement by 1980 for all: :.:n:i.9-J or appliances, including air condi­ tioners, 'refrigerators and other home appliances. Achievement of these goals would save the equivalent of over one-half million barrels of oil. per day by 1985. If agr,eement cannot be reached, the President will submit legislation to establish mandatory appliance efficiency standards. 6. Appliance and Auto Efficiency Labelling Act (Legislative) '.""- The Pres.ident will ask the Congress to enact a mandatory labelling bill to require that energy efficiency labels be placed on new appiiances and.autos.

(C) Emergency ~reparedness

The President announced that co~prehensive energy emergency legislation will be proposed, encompassing two major components. 1. Strategic Petroleum Storage (Legislative) -­ Development of an energy storage system of one billion barrels for domestic use and 300 million barrels for military use. The legislation will more ' .

authorize the government to purchase and pre­ pare the storage facilities (salt domes or steel tanks), while complex institutional questions are resolved and before oil for storage is actually purchased. FEA will develop the over­ all program in cooperation with the Department of the Interior and the Department of Defense. All engineering, planning, and environmental studies would be completed within one year. The 1.3 billion barrels will. not be complete for some years, since time is required to purchase, prepare, and fill the facilities. 2. Standby and Planning Authorities (Legislative) The President is requesting a set of emergency standby authorities to be used to deal with any significant future energy shortages. These authorities would also enable the United States to fully implement the agreement on an Inter­ national Energy Program between the United Sta'tes and other nations signetl on November 18, 1974~ T~ls legislation ~ould include the authority to.: ' · · · ta) , Implement energy conservation plans to ·reduce demand ~or energy; '(b), ' a:}.locate petroleurp products and establish price 1 bbntrols' for allocated products; . ll" ~ ' . ,\ . , (e) ration fuels among e.nd:users;

(d) alloc~te~materials needed (~~·energy 'proouction'where such materials. may be in short supply; (e) increase production of domestic oil; and '' . (f) ,regulate petroleum inventories.

III. ACTIONS ANNOUNCED,' ~y' THE PRESIDENT' TO' MEET: ~O~G-TERM GOALS (BEYOND"l9B5T-:- - : I ' '-;- ~ . ' f-. - ' ··'~ ;' "' ·'" The.expanded research and development program bn:which the nation is embarked wi11 ··provide the basis for increasing domestic energy supplies and maintaining energy independence. It will also make it possible· in the long run for the U.S. to export energy supplies and technology to others in the free world. Important elements are:

more (OVER) 44

(A) Synthetic Fuels Progra.n (Administrative) -- The President announced a liational Synthetic Fuels CoIDiilercialization Progran to ensure at least one million barrels per day equivalent of synthetic fuels capacity by 1935, using technologies now nearing commercial applicatLOn. 1. Synthetic fuel types to be considered will include synthetic crude from oil shale and a wide range of clean solid, liquid, and easeous fuels derived frora coal. 2. The Program would entail Federal incentives (possibly including price guarantees, purchase agreements, capital subsidies, leasine pro­ grams, etc.), granted competitively, and would be ained at the production of selected types of gaseous and liquid fuels froc both coal and oil shale. 3. The program will rely on existing legislative authorities, including those contained in the Federal i'Jon-liuclear Energy Research and Develop­

ment Act of 1974 1 but new legislative authori­ ties will be requested if necessary. (B} Energy rresearch anci Development Program -- In the current fiscal year, the Federal Government has greatly increased its funding for energy research and development procraras. · These Federal programs are a part of a much larger national energy R & D effort and are carried out in cooperation ·with industry, colleges and universities and others. The President stated that his 1976 Budget will continue to empha- size these accelerated prozrams which include research and the development of technology for energy conserva­ tion and on all fores of energy includinr: fossil fuels, nuclear fission and fusion, solar and geothermal. (C) Energy Research and Development Administration -- (S::lDA). The President has siened an Executive Order which activates, effective January 19, 1975, the Energy Research and Developnent Administration. ERDA will bring toeether in a single agency the major Federal enerr;y R & :0 prograL\S w:i.ich will have the responsibility for leading the national effort to develo~ technology to assure that the U.S. will have an aEple and secure supply of energy at reasonable prices. EP.DA con­ solidRtes oajor R ~ D functions previously handled by the AEC, DepartI!lent of the Interior, i!ational Science Foundation and Environmental Protection Agency. En.DA will also continue the basic research, nuclear materials production and weapons programs of the AEC. more 45 . IMPACTS OP. NEAR AND MID-TERI-! ACTIONS ON PETROLEUM CONSUMPTION AND IMPORTS NEAR TERM PROGRAM {MMB/D) 19'75 1977 CONSUMPTION IF NO NEW ACTIONS n:o rr.J IMPORTS IF NO NEW ACTIONS 6.5 8.0

. " IMPORT SAVINGS Less Service Savings by Short-term 1975 197? Actions: ,- Production from Elk Hills 0.2 0.3 Coal Conversiop 0.1 0.3 Tax Package . ' ·o~9 1.6 TOTAL. IMPORT SAVING~~:-;:~ · 1."2'' 2.2

REMAINING IMPORTS 5.3 5.8

MID•TERM PROGRAM CONSUMPTION IF NO NEW ACTIONS . 23.9 MMB/D IMPORTS IF MO NEW ACTIONS 12.7 MMB/D

Lesssa.vim1s Achieved by 1985 IMPACT Following Actions: ON IMPORTS

OCS Leasing 1.5 NPR.-4 Development 2.0 Coal Conversion 0.4 Synthetic Fuel Commercialization 0.3 Auto Efficiency Standards 1.0 Continuation of Taxes 2.1 Appliance Efficiency Goals 0.1 Insulation Tax Credit 0.3 Thermal Standards 0.3 Total Import Savings by Actions . · .. s.o Remaining Imper.ts 4.7 Less: Emergency Storage 3.0 Standby Authorities 1.7

NET IMPORT VULNERABILITY 0

more (OVER) 46 INTERNATIONAL ENERGY:1P.0LICY. AND.FINANCING ARRANGEMENTS ------·- - ' . ------BACKGROUND

The cartel created by the Organization of Pet;roleum Exporting Countries :(OPEC) has successfully increae. ,d their governments' price for expor~s or oil from , approximately $2 '.per barrel in mid ~1973 to :$10' per ' 1 barrel today. Even after paying for their own increased imports, OPEC nations will report a surplus of over $60 .bill1on ·in 19J4, which must be invested. Oil price increases have creates serious'pro.bi:ems for the world economy. Inflation pressures have been ·intenr. sified. Domestic economies have been disrupted. Consuming nations have been reluctant to borrow to ·r1nance their oil purchases because of current balance of payments risks and the burden of ·future interest costs and the repayment of massive debts. International economic relations~have been distorted by the large flows of capital and uncertainties about the future~ • .. l U. S • POSITIOJ>!. The United States believes that the increased price of oil is the major international, economic problem and has proposed a comprehensive program for reducing t,he qµrrent exorbitant price. Oil 1mport-1n© :nations must :co.operate to reducEj!.consumption and accelerate·the devel0pment of new sources of energy in order to create the economic ·conditions for a lowe:r ·oil price. ':However;, until the price of. o,11 ;d<:>es .decline> international sta'bility must be protected by f1nancing facilities to assure oil · importing nations that financing will be available on reasonable terms to pay for their oil importsi. The United States i.s active in developing these financin.g programs. Oqce a cooperative program for, energy con·· servation and· resource development. and the interim· financing arrangements are agreed ;_upon,,- i.t wil!l. be possible to nave constructive meetings with the -oil producers . . , . . , ACTIONS TAKEN BY OIL CONSUMING NATIONS · ·

Th~ oil consuming nations have already creat:ed the Int~~national Energy Agency to coordinate conservation and resource development programs and poli'C.ies fbr reacting to any future interruption of oil exports by producing nations. The four major elements of this cooperativ;e program are: ..

··more 47 An emergency sharing arrangement to immediately reduce member vulnerability to actual or threatened embargoes by pro'ducers _;

A long-term co9perative program to reduce member·~ nation dependence on imported oil~

A comprehensive information syst~m designed to improve our knowledge about the world oil market and to provide a basis for consultations among members and individual companies; and

A framework for coo:r'dinating relations with producing nations and other less developed coneuming countries. The International Energy Agency. has been establisned as an autonomous organfzation under the OECP.. It is open to all . OECD nations· willing and able to meet the obli·­ gations· created by the program. This international agreement establishes a numb.er of conservation and energy resources development goals but.each member_ is_ left free to determine what domestic measures to use in achieving the targets. This flexibility enables the United States to coordinate our national an4 international energy goals. OTHER U.S. ACTIONS AND PROPOSALS The United States has also supported progrru;ns for' pro­ tecting international stability again~t dis-t;orti,ng •. financial. flows created; by the sudden. increase of o,11 . prices. Although the'massive surplus of export earnings accumulated by the producing nations will have to be invested in the oil consuming nations, it is unlikely that these investments will be distributetl so as to match exactly the financing needs of i?ldividual impor~· ting nations. ·Fortunately.the existing complex of private and official financial institutions has, ln the case of the industrialized coun'tries, been -effec~~ ve in redistributing the massive oil export earnings to date. However, there is concern that some individual industrialized nations may not be able to continue to obtain needed funds at reasonable interest rates-and terms during the transition period until supplies are increased, conservation efforts reduce oil imports and the price of oil declines. Therefore, the United States 1 has supported various proposals f'or ureshu.t"t'ling ; the recycled funds ..among oil cons.um.ing ,nations,, including:

more (OVER) 48 Modification of Internati.onal Monetary Fund (IMF) rul~s to p~rmit mQre ··ext~nsive use. of .e~,isting. IMF resources without further qel'ay; , Creation of a financial sol14arity faci+ity as a i1sa:rety ··net 11 for pai;itici'patirig Ot,:CD. countries that are prepared to 6ooperate'in an effort to increase conservatiq,n and energy resour.ce develop­ men,t actions to create Pre~sur~ ~to r~duc~ the present price ·or oil.> . . . · . ~ " ; . Establishment or a special' trust fund managed by th~ IMF which woul9, extend balance of payments... · a~s:ist'ance to the ntost seriously affected, develop·· ing nations on a concessi'onal basis not now possible under IMF rules •. The United Stat~s bopes that oil exporting nations might co.ntri'bute a major shar~ of the trust fund and that· additional resources might be provided through the'saie oi a' small portion of the IMF' s ·gold' holdings in which the diff~rential between the original cost ot the gold and the current market price would be added to the trust· fund · and · · · · · '' ~ ' An increase 1n 'IMF quotas which,.would make more resources available in 1976. These proposal$ will be discussed at ministerial. level meetings of ~he Group or Ten, the IMF,In~e:rim Qommittee and the Internationa1·mopetary Fund/Inter.national Bank, for Reconstruction arid Development ColllIIli ttee in. Washington,' D ~ C. January 14 to 17. : · • I ' ' • .~. In these meetings, the Qn1ted Sta.tea will contirr1.1e to press its views concerning the fundamental import.ance of international cooperation to.achieve.necessary con .... servation and energy reso_urces deve.lopment go~ls as a basis for. protecting our national se.(}urity. and underlying economic strength. United States Travel Service U.S. Department of Conunerce Washington, D.C. 20230

FACT SHEET

Tourism: The 4.7 Billion "Inside-Out" Export

In.:te.Jtn.a;tlonal touJU..6m L6 one 06 the Wgu:t -0ingle. fiac.toM in woJLld .:Or.ade.. Vupi:te ~ec.u-0ion, infila.:tian and e.n~gy­ p~ablem infilu.enc.u, :Or.ave£. .t.a .the United S.t.a.t.u 6Mm a.th~ n.a.t.ia M incteM ed dwU..ng 19 74. I.t now appeaM .that the U.S • .towrl.6m de6ici.t. may ac..tua.lly dect,i..ne, 60~ .the -0ec.and -0u.c.c.e.&.6ive ye.M, po.Mibly ~opping .to $2. 95 11U..l.lon. H~e. Me :the fiac.U and 6igWLU behind thL6 enc.ou.Mging development. TOURISM: THE $4.7 BILLION "1NSIVE-OUT" EXPORT • .. THE FACTS

A QUICK OVERVIEW OF TOURISM'S ECONOMIC IMPORTANCE* ••.

+ 313,000 American jobs were created or supported through inte~national tou~i-Om alone last year. Four million Americans work at tourism-related jobs • • • + $4.7 billion was the total contribution to the U.S. economy by international tourists in 1974 -- a hefty 17% rise over 1973's receipts ...

+ Every visitor arriving in the U.S. from ove~-0ea-0 last year was a "living $487 export" ••.

+ 14,123,047 tourists visited the United States in 1974, representing a "temporary population" larger than 48 of the 50 states . . . + Visitors coming to this nation last year left about $340- million in local, state and federal taxes to help support roadways, schools, welfare, etc. -- a legacy left behind for their American hosts ... taxe-0 tho-0e ho-0t-0 won't have to pay

+ Tourism within the U.S.A. is exceeded only by g~oee~y pu~eha4e4 in terms of dollar expenditures. It is a $61 billion industry in this nation . . • + Inflation, recession and energy obstacles notwithstanding, last year's increased foreign exchange earnings from incoming tourism represents the second highest increase in more than a decade • + Tourism is the No. 1 income producer in three states -- Florida, Hawaii and Nevada . and among the three top industries in 43 other states • • • + More than 30 million international visitors are expected to join Americans in celebrating their Bicentennial during 1975-6.

-a-

*All data contained in this and all following material are provided by the Office of Research and Analysis, United States Travel Service, and all are based on conservative estimates where final statistics are not available.

Page 1 TOURISM: THE $4. 7 BILLION "INSIVE-OUT" EXPORT ••• THE FACTS

U.S. EFFORTS TO INCREASE

INTERNATIONAL TOURISM TO THIS COUNTRY . . •

UNITED STATES TRAVEL SERVICE USTS is the national government tourism promotion and development office, created by the International Travel Act of 1961. It is an agency of the U.S. Department of Commerce, and is located in Washington, D.C.

USTS ABROAD Six nations -- Canada, Mexico, Japan, , West Germany and France -- are the top six tourism­ generating nations to the u.s. (86% of all incoming tourists; 74% of all travel dollar earnings.) To provide maximum support for U.S. tourism promotion efforts in those markets, USTS maintains a field off ice in each. Those off ices serve the travel industries in those nations, assisting them to become more effective and energetic "salesmen" for travel to the United States.

USTS PROGRAMS Working with travel producers abroad, USTS creates (and helps support f inan­ cially) tour packages to the U.S.A., which are sold through tour wholesalers and/or retailers. Further, USTS has an intensive advertising program, as well as a major public relations effort designed to sell this nation and individ­ ual destinations to potential travelers abroad. A steadily enlarged thrust to attract conventions and incentive-travel programs to the U.S.A. is a primary USTS endeavor, as is the continuing campaign to enlarge the trade-show and exposition business to this nation. USTS also provides extensive research on travel for foreign and domestic needs, and conducts an extensive visitor facilitation program, designed to assist the nation in becoming a better host for international visitors.

Page 2 continued • • • . • • continued

TOURISM PROMOTION For the current fiscal year, the USTS BUDGET budget is $11.2 million, placing the United States .thi.Jr.;teenth among the nations of the world in terms of funds spent to promote tourism to those nations.

ASSIST.ANT The Hon. c. Langhorne Washburn is the SECRETARY first person to hold this position, OF COMMERCE created by Congress in 1970. His FOR TOURISM reappointment to this post in 1973 made him the first Assistant Secretary of Corrunerce to serve two terms. As his major responsibility, USTS has moved up from an agency with a $4.5 million budget in 1969 to its present $11.2 million level. At a meeting of state travel directors in Washington in February, Mr. Washburn was hailed by members of the Congress attending the event as "Mr. Tourism" in recognition of his extraordinary contributions to the U.S. travel industry.

DEPUTY Members of the Assistant Secretary's ASSISTANTS staff are the Hon. David N. Parker, Deputy Assistant Secretary of Commerce for Tourism, who joined the Department in September, 1974, formerly having been Appointments Secretary for the President of the United States; and the Hon. Peter J. Malatesta, Deputy Assistant Secretary of Commerce for Bicentennial Affairs, a member of the Department since January, 1974. Mr. Malatesta was formerly Administrative Assistant to the Vice President of the United States.

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Page 3 TOURISM: THE $4.7 BILLION "INSIVE-OUT" EXPORT ... THE FACTS

GENERAL INFORMATION CAPSULES ON U.S. AND WORLD TOURISM •••

WORLD ON Global tourism receipts totaled $29 THE MOVE billion in 1974, u.p 5.1% over the $27. 6 billion recorded the previous year. International political, economic and energy problems were among the influences that caused a drop in world tourism-arrival figures. There were 209 million visits to major tourism nations in 1974, a reduc­ tion of 2.7% from the 215 million recorded a year earlier.

DESTINATION USA Again in 1974, the U.S.A. was one of the largest tourism-receiving and -generating nations in the world. The United States had a 6.7% share of the total world arrivals in 1974, compared to a 6.5% share in 1973, and 16.1% of the total receipts, which registered 14.3% the previous year.

TRAVEL-$ Indications are that, in spite of unset­ DEFICIT tling economic and political changes in 1974, the United States travel-dollar deficit in 1974 may be under $3 billion for the first time since 1971. The 11 travel deficit" is the difference in expenditures by Americans abroad vs. the expenditures by international visitors to the U.S.A. For 1974, the dollar-lag could be as low as $2.95 billion, 3% less than the $3.080 billion recorded in 1973.

AMERICANS Expenditures by Americans traveling abroad ABROAD in 1974 were about $7.7 billion, an increase of 8% over 1973 -- about the same percentage of growth from 1972 to 1973. Final tallies are expected to show that the number of American tourists abroad will diiop n in 1974 from 24.8 million the previous year to 24.l million last year.

Page 4 continued continued . . .

PRESIDENT FORD In a message to a recent conference ON TOURISM of state travel officials, sponsored by USTS, President Gerald R. Ford said • . • "Never before has tourism had such an impact on so many of our national interests. It is a vital aspect of our nation's economy and, more than ever, an important factor in our relations with other countries. Tourism has growing value as a source of foreign currency. It can appre­ ciably strengthen the vitality of our economy at a time when this is our primary national task."

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Page 5 ~ Gas watchers

Several legislative and regulatory measures to achieve gasoline conservation are now under spirited public discussion and scrutiny. From the extreme of gas rationing to less harsh measures, there is little agreement on which program might be best to help meet the absolutely necessary goal of reducing gasoline consumption and our dependence on foreign oil supplies -- to reverse our nation's energyI economy problems.

Yet, all alternative programs being proposed boil down to the need for the individual motorist to use less gasoline in daily driving. Public attitudes and personal driving habits need to be changed.

And that is what GAS WATCHERS, a grassroots program to promote wide­ spread conservation on a voluntary basis, is designed to accomplish. It is compatible with all legislative alternatives being discussed and clearly apolitical. It can be (and is being) implemented immediately by motorists throughout the country. There is no need for discussion and further delay.

PROGRAM OBJECTIVES

One objective of the GAS WATCHERS Program is to convince the public of the gravity of the immediate problem and of the need to conserve gasoline to overcome the nation's energyI economy problems.

Second, the program shows the public how to conserve. By use of a GAS WATCHERS' Guide and a personal consumption scorecard as the core of the program, motorists are shown the most effective steps to take to use less gas in daily driving. Several public service projects and communications media are also part of the overall program.

Another objective of the GAS WATCHERS Program is to measure results of conservation efforts. Individual motorists can be shown how much less gas they are using. On a state, regional and national basis, AAA will monitor and report on consumption trends.

The specific goal of the GAS WATCHERS Program is to get every licensed driver in the U. S. to become a GAS WATCHER, with a commitment to make 5 gallons of gasoline do the work of 6.

The goal was selected because it represents the national goal of reducing oil imports by one million barrels a day from the present import rate of about 6 million barrels per day. This million-barrel-per-day reduction, the national goal, would be far surpassed if motorists meet the challenge of 5-for-6.

(over) COMMUNICATIONS MEDIA

In conducting the program, several communications media will be utilized by AAA, its local clubs and other organizations which tie-in with the program. They include news services, television and radio spots, newspaper advertisernents, AAA club publications and travel materials, publicity materials, speaking appear­ ances, mailing inserts, postage meter slugs, bumper stickers, etc.

PUBLIC SERVICE PROJECTS

The GAS WATCHERS' Guide, a 16-page pamphlet which explains in some detail what steps are necessary to save gas, is the back1l9ne of the educational process for actually accomplishing conservation on the scale required. It belongs in every car.

Other projects urge compliance with the 55-mile-per-hour speed limit, promote renewed interest in carpooling, provide for local traffic flow auditing, encourage adoption of "here-and-now" technology to save gas and provide for classroom projects for students.

JOINT PARTICIPATION

AAA welcomes participation by individuals or groups interested in combining resources to effectively reach target audiences and achieve GAS WATCHERS objectives. Such participation, AAA feels, is clearly in the best interest of the U.S. economy.

These people would include representatives of:

*Businesses and associations

*Professional societies with member expertise that can help meet the program's goal

*Civic clubs and neighborhood groups who want to help spread the word

*Students in schools and colleges who want to participate in this public service project

*Churches and ministerial alliances

AAA will willingly serve as a rallying point for cooperative action and joint participation with anyone who desires to make a contribution in the conduct of this program.

THE AMERICAN AUTOMOBILE ASSOCIATION

AAA is a federation of 226 local motor clubs throughout the u. s. and Canada that serves over 16. 5 million members. Its 832 offices 1·0 the lJ s ·d specia· 1. ize d services· to memb ers and engage in public service activities. • prov1 in e the best interests of motorists and travelers in general.

Address for AAA' s national headquarters is 8lll Gatehouse Road Falls Church, Virginia 22042. Telephone number is 703/ AAA-6000. ' FACT SHEET U.S. DEPARTMENT OF TRANSPORTATION

The U.S. Department of Transportation was established by the Transportation Act of October 15, 1966 (80 Stat. 931;49 U.S.C. 1651} and became operational in April 1967. It was comprised of elements transferred from eight other major Departments or Agencies and presently consists of the Office of the Secretary, and seven operating administrations whose heads report directly to the Secretary and who have highly decentralized authority. The National Transportation Safety Board attached to the DOT for support services becomes an independent Federal Agency April 1, 1975. The seven operating administrations of the DOT are: • The U.S. Coast Guard is a branch of the Armed Forces of the U.S. and is a service within the DOT except when operating as a part of the Navy in time or war or when the President directs. It has 37,486 military personnel, and 6,385 civilian positions. Its budget authority for FY 1975 (estimate) is $937 million. • The Federal Aviation Administration FAA , formerly the Federal Aviation gency, is charged with regulating air commerce to foster aviation safety, promote civil aviation and a national system of airports, achieve efficient use of navigable airspace, and development and operation of a common system of air traffic control and navigation for both civilian and military aircraft. The FAA has approximately 57,000 personnel and FY 1975 budget (estimate) of $1.7 billion. • The Federal Highway Administration (FHWA) encompasses highway trans­ portation in its broadest scope, seeking to coordinate highways with other modes of transportation. It is concerned with the total operation and environment of the highway systems, with particular emphasis on improvement of highway-oriented aspects of highway safety. It has approximately 5,000 personnel and a FY 1975 budget (estimate) of approximately $7.5 billion. • The Federal Railroad Administration FRA consolidates Government support of rai transportation, provides a unified and unifying national policy, administers and enforces rail safety, administers financial assistance programs for certain railroads, conducts research and development in support of intercity ground transportation, and operates the Alaska Railroad. It has approximately 1,400 personnel and a FY 1975 budget {estimate) of $180 million. • The Urban Mass Transportation Administration (UMTA) assists in the development of improved mass transportation facilities, equipment, techniques, and methods, and encourages the planning and establishment of areawide urban mass transportation systems. It also provides assistance to state and local governments in financing such systems. The UMTA has approximately 405 personnel and a FY 1975 program level of $1.4 billion.

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1 Nationa1 Highway Traffic Safety Administration (NHTSA) carries out programs relating to the safe performance of motor vehicles and re1ated equipment, and motor vehicle drivers. The NHTSA has 881 employees and a FY 1975 budqet of $269 million. • St. Lawrence Seaway Development Corporation is a wholly-owned Government enterprise and is responsible for the development, operation, ar.d maintenance of that part of the Seaway between Montreal and Lake Erie within the territorja1 1imits of the United States. It has approximately 190 employees and is financia1ly self-supporting.

#### WHITE HOUSE CONFERENCE on Domestic and Economic Affairs

DIPLOMAT HOTEL

CONVENTION CENTER

HOLLYWOOD, FLORIDA

FEBRUARY 25, 1975

9:00 a.m. • 5:00 p.m. PROGRAM

9:00 A.M. Introductory Remarks David R. Keating, Mayor, Hollywood, Florida Sid Levin, President, Miami Chamber of Commerce William J. Baroody, Jr. Fernando E. C. DeBaca GERALD R. FORD 9:20 A.M. Transportation PRESIDENT OF Remarks/Questions & Answers THE UNITED STATES John W. Barnum OF AMERICA

10:30 A.M. Intermission

10:45 A.M. The Housing Situation Remarks/Questions & Answers H. R. Crawford

11:45 A.M. Reception (Regency Room· North)

12:15 P.M. Luncheon Banquet (Regency Room ·South) John W. Barnum Acting Secretary of Master of Ceremonies J. P. Taravella, Chairman Rogers C. B. Morton the Department of Florida Council of 100 Secretary of the Interior, Transportation Invocation Father J. Kenneth Major

Address "The State of the Economy" L. William Seidman

1:45 P.M. Intermission (Reconvene Convention Hall) L William Seidman William J. Baroody, Jr. 2:00 P.M. The Economy and Tourism Assistant to the President Assistant to the President C. Langhorne Washburn for Economic Affairs for Public Liaison

2:10 P.M. The State of the Economy Remarks/Questions & Answers L. William Seidman C. Langhorne Washburn C. Langhorne Washburn H. R. Crawford 2:55 P.M. Intermission Assistant Secretary Assistant Secretary of the for Tourism, Department of Housing 3:10 P.M. Energy and the Environment Department of Commerce and Urban Development Remarks/Questions & Answers Rogers C. B. Morton Michael Raoul-Duval

4:30 P.M. ADDRESS BY THE PRESIDENT OF THE UNITED STATES Fernando E. C. DeBaca Michael Raoul-Duval Special Assistant to Associate Director of the President for Program Moderator and Conference Chairman - William J. Baroody, Jr. the Domestic Council Hispanic Affairs The South Florida White House Conference on Domestic and Economic Affairs is one in a continuing series of White House conferences held in different cities across the country. These conferences are jointly sponsored by the White House Office of Public Liaison and local, state and regional organizations representing the different sec­ tors of economic society - business, labor, consumers, etc. The purpose of these meetings is to focus on the major issues of the day as they affect the country and the people of the conference location and to facilitate genuine two-way dialogue in a spirit of cooperation in the hope that these endeavors will help the government be­ come more responsive to the needs of America and her citizens.

SPONSORING ORGANIZATIONS

American Association of Retired Persons and the National Retired Teachers Association

Florida Council of 100

Greater Ft. Lauderdale Chamber of Commerce

Greater Hollywood Chamber of Commerce

Greater Miami Chamber of Commerce

Latin American Chamber of Commerce of Hialeah

Latin Chamber of Commerce

League of Women Voters of Metropolitan Dade County

Miami Beach Chamber of Commerce

United Way of Dade County

Urban League of Greater Miami

White House Office of Public Liaison THE WHITE HOUSE

WASHINGTON

February 25, 1975

TO THE SOUTH FLORIDA CONFERENCE PARTICIPANTS:

The enclosed information includes a copy of the President's State of the Union Message and an accompanying Fact Sheet delivered to the Congress on January 15.

We thought this information might be helpful to you and your organization.

If we can be of additional assistance after the Conference please let me know.

Sincerely,

Assistant to the President Liaison 'GOVERNMENT RELATIONS

A New Communications Link· with Government

White House sets up Office of Public Liaison to work with private organizations

An Interview with William J. Baroody, Jr., Assistant to the President -

ILLIAM. J. BAROODY, Ja., is the be the degree of support that he results to date indicate that the Wnew Assistant to the President receives from President Ford, Vice President means what he said. in charge of the Office of Public President-designate Nelson A. Rock· Using the twin tools of meetings Liaison. at the White House and meetings in His mission: to set up a smoothly cities around the country, Mr. Ba­ functioning two-way interchange roody already has made significant between the White House and or· progress toward his goal of tapping ganiza.tions in the nation's private the views of leaders of business, sector. farm, labor, veterans, consumer, Mr. Baroody accepted the assign­ youth, and other groups. President ment from President Gerald R. Ford Ford has participated personally in mid-September. When he did, he in some of the meetings. In others, knew that his role was not unlike Mr. Rockefeller will take part, that of a reserve quarterback who after his confirmation by Congress, enters a game late in the second along with key members of the half with his team trailing. He is Ford Cabinet. going to have to play a lot of catch­ Trade and professional associa· up ball. tion leaders have attended some of "In the last days of President the sessions; others will be receiv­ Nixon's administration, communi­ ing invitations to represent their cations with the public were not members at a score of conferences very good," says the 36-year-old Mr. to be held over the next 12 months. Baroody in a quiet, diplomatic un­ For Mr. Baroody, the job is the derstatement. "Now we· are going most challenging to date in a career to change that." efeller, and the various members that has included high-level posts If the effort succeeds-and Mr. of the President's Cabinet. He has at the Department of Defense and Baroody is determined to see that been assured by Mr. Ford that he on Capitol Hill. He joined the White it does-the decisive element could will get complete cooperation, and House staff early in 1973 after a

November 1974 • ASSOCIATION MANAGBMBNT ~ "The Office of Public Liaison covers the whole range of private organizations-any group that Is not part of the government."

stint at the Pentagon that included and professional societies; farm, the population. We are holding responsibility for long-range plan· labor, and veterans groups; civic some of the meetings in the White ning and net assessment functions organjzations and consumer groups; House, and others are being con­ of the Seci:,etary of Defense. His academic and ethnic groups; young ducted in cities throughout the work earned for him the highest people and senior citizens. The United States. They are one·•:fay or civilian honor-the Defense Distin· Office of Public Liaison covers the half-day gatherings. When a session guished Civilian Public Service whole range of private organiza­ is held in the Cabinet Room or ,\ward-that can be given by the tions-any group that is not part of Roosevelt Room at the White Secretary of Defense. the government. House, my office m.akes up the in· A native of Manchester, New vita'tion list. But when we meet Hampshire, Mr. Baroody is the son Why has this job been given a high in the field, we get the cosponsor­ of William J. Baroody, Sr., head of order of priority by the President? ship of local organizations and let Washington's prestigious American them do the inviting. Enterprise Institute for Public He believes in it, for one thing. Policy Research. He holds a bache­ Back in 1969, when the President Aren't some people goin, to say lor's degree from Holy Cross Col­ was Minority Leader of the House that your meetings are simply a lege and did graduate work in po­ of Representatives, he urged then­ propaganda forum for the liticlll science at Georgetown Uni­ President Nixon to create an office President's program? versity. He and his wife, Mary Mar­ along the lines of the one I now garet, have nine children, seven head. President Ford made the Some may see it like that, and boys and two girls, ranging in age recommendation because he is a there is no question but that we from 12 to two. strong advocate of open and free will be trying to explain his pro­ In the following interview with communications. That's why he gram to the public in a persuasive ASSOCIATION MANAGEMENT, Mr. Ba­ submitted the idea, and it explains way. But we're also going out there roody explains the role of his office his decision to follow through on to listen and to seek compromise in the new administration. it once he became President. solutions to national 'problems. So, In point of historic fact, however, it is not a question of badgering a Mr. Baroody, how would you Bryce Harlow (Washington repre­ captive audience. describe the objective of the Of6ce sentative for Procter & Gamble and of Public Ualson? a frequent Presidential consultant) How many aasoclatlon executives deserves some credit for the "liai· . have taken part tn these meetings? Well, stated simply, we hope to son" function. He ·suggested it ·in open up a dialogue between the 1958, during President Eisenhower's I can't give you an exact count administration and all of the major last term. offhand,· but tpere have been quite nongovernmental organizations in a few. A lot depends upon the the country. How do you plan to make the theme of a particular conference, dialogue a reality? which groups are cosponsoring it, What specUlc · orpnlzatlons does and so forth. One of our earliest this Include? We're employing a number of meetings dealt with the new pen­ methods. At the top of the list are sion law, and ins,ur;mce association The dialogue we are trying to set meetings-sit-down sessions with people took part ·\n that. On an up will be with trade associations spokesmen for specific segments of even earlier occasion, in Los An·

48 ASSOCIATION MANAGEMENT· November 1974 geles, the local; ..Ncrchmt.s ;and warning snte~-' to what formerly with the Joint Economic Manufacturers AssQC.ial:ion arul: :the people are thinting at ·the grass Committee of Congress, and his Los Angeles Chamber of Commerce roots. This is valuable in shaping work brings him into contact with provided a forum. I expect we'll be executive actions and decisions and ot;.ier economists, business groups, doing more of that as we go along, in determining the form and sub­ agricultural organizations, and peo­ especially in post-summit meetings stance of our legislative proposals. ple in the investment field. on inflation and then next year, Jeffrey P. Eves was with the when President Ford takes his legis­ Does President Ford read each of National Association of Manufac­ lative program to the people. these reports? turers at one time and served for a while under.Dr.• Jackson Grayson You mean you w1ll be contacting Definitely. You may recall that at the Price ;coihmission. He is in­ associations and aaldng them to let he pledged that his would be an · teracting with· associations, bwi­ you be a part of their meetings? open-door administration. Well, he nessroeµ-:--aµd he also serves as our meant exactly that. He looks closely advance man in helping to set up Exactly. We think that both asso­ at what comes through his door and meetings around the country. ciations and the administration he listens carefully to those who The fourth professional on my have something to gain from the contact him. At our White House staff is Wayne Valis, a researcher arrangement. sessions, we try to keep the groups and speech writer. We lured him rather small-no more than 40 per­ over from my father's organization What ls the specific advantage to sons. In the field, we shoot for sev­ -the American Enterprise Insti­ an aasociation executive or to his eral hundr.ed people. No more. If tute. He is especially valuable on members? attendance at an individual meeting legislative matters. gets too large, then you defeat the Miss Loraine Hodkinson is my Take the meetings that are being purpose of productive communica­ Administrative Assistant. held every other Wednesday at the tions. White House. If an association offi­ Are the field meetings usually cial is invited to attend, the chances Are you handling this assignment limited t0 one group? Business, are very good that he will have an on your own? for example? opportunity to make a facile input -to speak frankly to the President, No. I have four staff assistants No, we make every effort to have the Vice President, the Secretary of and clerical back-up, too. a mixed audience. In a September the Treasury, or other leaders of the One of my assistants, Dr. Theo­ meeting, fot example, representa­ administration. dore C. Marrs, deals primarily with tives of business, the Urban Coali· It's a channel, an opportunity for veterans, military groups, medical tion, the labor movement, consum­ give and take, an informal, otI-the­ associations, and the like. He has a er organizations, and others were record exchange of views on major background as a former Deputy As­ in attendance. The broader the dia­ issues. Of course, meetings held sistant Secretary of Defense, and he logue, the better. One of our aims outside of the White House are served in the Air Force as a pedia­ is not only a you-us relationship, open to press coverage, but even trician. but a you-us and you-you bridge. in that setting we believe that the Another person on my staff, Don We're hoping that the dialogue ap­ method does a lot to improve com­ Webster, is an economist. He was proach will spread, with business munications between the White House and the public.

What happens after you hold a meeting, say, In New Orleans? Is an attempt made to go beyond what is said at the meeting itself?

After each meeting, whether it is held here in Washington or out in "Associations and their the field, I prepare a memo for the members ... have an oppor­ President, summarizing the think­ ing and recommendations that the tunity to be heard before the meeting has produced. This goes to final decisions are made." the Oval Office within a day or so. Later, I pass along a more detailed report of what has been covered, Reprinted from the November, what major points of disagreement 1974 issue of Association or agreement have been uncovered, Managem·ent copyright · 1974 and so on. by the American Society of These reports also circulate to top members of the President's ad­ Association Executives. ministration. They give us an early-

November 1974 • ASSOCIATION MANAGEMENT 49 tions meet, share views, they oper­ ate within a very narrow band. The kind of effort we are making, we feel, offers at least the possibility of widening the scope of our per­ ception as a people. I think it is significant that the charter given me by President Ford places this office on an equal foot­ "We are going out ing with his press office and his there to listen and to congressional office. He hopes through all three to reach the seek compromise largest constituency possible-the solutions to national people.

problems." With a mixing of special interest groups, you are going to get some pretty heated exchanges, aren't you? Sure. But that's good. Better to be talking, even if heatedly, than to be glowering in suspicion. The President's economic summit meet­ ing showed that Americans can take the risk of disagreeing in public without disintegrating into factions. We hope to continue in that spirit associations and others broadening tralizing power, not pulling more in the months to come. the mix and number of those with of it to Washington or more of it whom they discuss prime issues. from the Cabinet departments and Won't the President inevitably have agencies to the White House. to withdraw from active pardcipa· You mendoned the value of "early tion in your programs? warning"- It seems that you are biting off a lot, even without playing the role of I can tell you that he intends to That is awfully important. Too ombudsman. Do you really think do just the opposite-to stay in­ frequently in the past, what de­ you can make this system work volved and to keep the door open. veloped here in Washington was put well without becoming trapped in a And his ears open too. You see, Mr. together without sufficient airing babble of opinions and excessive Ford has a very special view of his beforehand. We think the liaison demands upon the President's role, one that has put its mark on project can prevent that by giving time? what we are doing through this new both the citizen and government a office. He sees the President's job handle ahead of the power curve­ The answer to that is yes, we as one of listening, guiding, and set· advance warning of potential crises think this program will work. In ting a moral and intellectual ex­ that can arise because of the actions a time of swift change, clear com­ ample. that government takes or proposes munications are essential. The He believes that, to govern justly to take. President is convinced of this. and well, a President must stay in Moreover, he sees the need for touch with the people who look to Do you see yourself as a kind of restoring people's faith in govern­ him for direction. He is looking for ombudsman for the public? ment, our system of legislation, the idea input-information that can presidency. The meetings we are help him, and others in his admin­ No, we don't have the resources holding are designed to restore that istration, in decision-making and for that, and it's really not why we credibility. Without communica­ problem-solving. Associations and are here. We want to make govern­ tions you can't have credibility in their members-in fact, every ele· ment audible to the people and the any society. Our country is one that ment of our population-have an people audible to government. is uniquely meeting-oriented. So, opportunity now to be heard before Nothing more, really. If we got we are using the medium of con­ the final decisions are made. They into the business of handling day­ ferences to develop deeper public can share in the process. to-day complaints, requests for in­ understanding of the complex link· In the last analysis, I guess you formation, and such, we would age between problems related to could say that we would rather run quickly bog down. I am not sure energy, inflation, trade, and so the risk of over-communicating that such an effort would be appro­ forth. than under-communicating. There priate in any event. It could raise We desperately need more mutual are more than 200 million people legal questions as well as eyebrows. understanding in America. Too out there. They deserve to be heard. President Ford believes in decen- many times when our organiza- jusell

50 ASSOCIATIO~ MANAGEMENT· November 1974 how to make 5 gallons of gasoline do the work of 6- to revive the economy and prevent tough controls on driving if you drive a car, you can help brake inflation/ recession and save yourself some money. become a GAS WATCHER. make 5 gallons of gasoline do the work of 6.

The United States energy problem is more of a crisis today than it was during the oil embargo of 1973-74. That's because we've fallen dangerously depen­ dent on foreign nations for our oil needs. And they're demanding whatever price the market will bear. As a result, soaring energy costs are pushing infla­ tion upward and creating recession. As the cost of energy climbs the cost of everything goes up-from a pair of shoes to the cost of a newspaper to the cost of gasoline. Our oil import situation is forcing businesses out of business and people out of jobs. As a driver, you can make a major contribution to solving the problems feeding on the energy emer­ gency. And you can do it in the best, fairest, most American way. As a volunteer. If you have the willpower to make a personal commitment to conserve gasoline-to make 5 gal­ lons do the work of 6-together we can reduce oil imports by one million barrels a day, the national goal, from the present import rate of about six million barrels a day. And we can avoid some really tough mandatory conservation measures that would cut us back a lot more. Where it would hurt the most. Making 5 gallons do the work of 6 is easy when you know how. In these pages you'll find a tankful of suggestions."Select from the many options those that will benefit you most and ihconvenience you least. You'll save money for yourself in the process. Please. Take a few minutes to act on one of the severest threats our nation has ever faced. Become a GAS WATCHER. Starting right now.

3 We've compiled our suggestions under six program-if not, ask about getting one started. If the categories: company is too small, try to arrange to join the pro­ • To-and-from work trips. gram of a nearby firm. Or get your company to enlist the cooperation of several others nearby in setting up • Daily family business trips. a joint carpool program. • Family education, civic and religious activities A computer isn't necessary to the success of a large trips. carpool program, although it might help in matching • Social and recreational activities trips. riders. A large locator map-with grids or zones • Keeping your car in tip-top shape. marked off will suffice. Index cards for potential rid­ • Good driving techniques. ers and potential drivers can be filled out with all the The rest is up to you. necessary information and then matched, either in­ After you've sorted through the fuel conservation dividually or by company personnel. tips listed in this pamphlet you may find it helpful to If your company or a group of companies can't get use the "Mileage Minder" in the centerfold to help together on their own, investigate the possibility of budget your driving. After logging each trip taken in establishing a community-wide program. Many your car for a week or two you'll get a quick picture of communities have already started this-some with your particular driving patterns and learn where you the help of local MA clubs. can place the most emphasis on reducing unneces­ In any carpool arrangement there are some basic sary trips. pointers to keep in mind: Become a GAS WATCHER yourself and tell your • Set a schedule of who will drive and when. Congressman you're doing your part to conserve • If only one person will be driving, have the cost­ gasoline. sharing arrangement firmly settled before starting. If all motorists make 5 gallons of gasoline do the • Get your pick-up routes set well in advance, at work of 6, we can revive the economy and prevent individual homes or at a central point. Do the same tough controls on driving. for the return trip from work to home. • Agree on how long the pool will wait for tardy Here's how: passengers. To-and-From Work • Determine whether smoking, radio playing, or eating will be permitted in the car. Every day 58 million American workers use the au­ tomobile to get to and from work. Forty million of • If you'll be a driver, check with your insurance them drive alone. Those 40 million workers drive an company to determine if your policy will cover any average of 94 miles and consume 290 million gallons liability or if you will have to change or add insurance of gasoline each week. provisions. It's even possible that as a carpool driver you may qualify for reduced premiums. Since commuting is the largest single category of automobile use, it is the obvious place for a family to You probably will want to try out the carpool for a start looking for ways to cut weekly driving mileage. week to iron out any kinks. Be prepared to make any Two methods stand out-carpooling and increased necessary changes after this trial period. use of public transportation, if available. Another alternative to driving alone to work in yoo r Starting a carpool is a lot easier than you think car is to switch to public transportation. If a bus or rail -perhaps as easy as talking to two or three of your line doesn't run near your home, consider carpooling neighbors who go to work at approximately the same to a point w,here you can board the transit service. time and work in the same vicinity. If you can't do For communities with no available public transpor­ that, try posting a notice on your company bulletin tation, you might consider establishing a charter bus board asking for riders who live near you. commuting service. Several communities, particu­ Your company may already have a carpooling larly in the Washington, D.C., area have utilized this

4 5 approach very successfully. Your local citizens or iom you. Encourage your teenagers to do more homeowners association is a good place to get such a double-dating, too. program going. MA can give you details on how to proceed. Family Education, Civic and Businesses also can consider setting up buspool Religious Activities programs-even using small vans or other multi­ passenger vehicles. This is the category of driving which accounts for the least amount of fuel consumption and since each A final possibility-if you're not too far from car-owning household takes an average of only 1.5 work-is to either walk or bicycle. such trips per week, it may be the most difficult to cut back. Still, there are ways to cut down driving even in this Family Business category. Family business trips-such as shopping, taking • Again, start by carpooling to evening classes, meetings and church activities with other partici­ children to school, dental and medical appoint­ pants. ments-consume 225 million gallons of gasoline per week. •Arrange to have schedules coordinated to re­ quire a minimal amount of travel on the part of par­ The average car-owning family makes five such ticipants. For example, arrange choir practice on trips weekly, each 11 miles long. Here is an obvious Sunday after church services rather than on a week area for some painless cutbacks: night. Start by combining shopping trips. • If you belong to committees of various groups, • Make careful lists before starting out and com­ try to arrange your committee membership and meet­ bine other errands-such as trips to the beauty par­ ing place and schedule to require the least travel for lor, cleaners, and drug store. participants. Perhaps you could meet at a home or If possible, handle all of these errands at one shop­ other spot within walking distance of most members. ping center to eliminate driving from one location to • Re-think your organization's meeting schedule. another. Comparison shopping can be done by Are frequent meetings-weekly or monthly-really phone or through newspaper ads. necessary? Why not once a month instead of weekly? • Try to arrange dental and medical appointments Or bi-monthly rather than monthly? so more than one member of the family can go at the • If you're planning on taking courses of some same time. kind, try to find those offered at a facility close to • Strive to schedule shopping and other family home-preferably within walking distance. Certainly business trips during non rush~hours. This will help you should try to arrange a carpooling program with to reduce traffic congestion and alleviate stop-and-go other participants in the class. driving which uses additional gasoline. • Suggest that your local government arrange its • Carpooling is an excellent idea for family busi­ meeting schedule so as many government agencies ness as well as for commuting. Share shopping trips as possible are meeting on the same night atthe same with neighbors. Enlist other parents to form carpools place. That way, citizens with business before the city for transporting children to and from school, extra­ council and the planning commission could make curricular school activities, and other group events if only one trip to appear before both groups. public transportation is not available. • Local government units might also consider • Cut down on trips to see friends in other parts of holding more public meetings in various neighbor­ the community. Call instead, it uses less energy. hoods rather than at the central government location. • If you're planning a night out at the theater or for This might help cut down on the number of miles dinner invite another couple, similarly inclined, to citizens have to drive to attend these meetings.

6 7 MILEAGE-MINDER Week one: miles beginning ____, miles ending ____, total ____

Car Use MONDAY TUESDAY WEDNESDAY THURSDAY FRIDAY SATURDAY SUNDAY ~ ~ & & ~ ~ ~ MILES ~ ~ ....: ~ ~ ....: ~ ~ ....: ~ ~ ....: ~ ~ ....: ~ ~ ....: ~ ~ ....: ~

Family business ODD ODD ODD JDDD ODD DOD DOD (Shopping, doctors, ODD ODD DOD ODD ODD ODD DOD errands) ODD ODD ODD ODD DOD ODD DOD

Educational, ODD ODD DOD ODD ODD ODD DOD civic and religious DOD DOD DOD DOD DOD ODD DOD functions DOD DOD DOD ODD DOD ODD DOD

Social and DOD DOD DOD DOD ODD ODD DOD recreational trips (friends, ODD ODD DOD ODD ODD ODD DOD movies, etc.) ODD ODD ODD ODD ODD ODD DOD Vacation

An important first step in conserving fuel is to become aware across the chart horizontally, count the number of boxes you of how you use your car and how far you drive during the week. have checked in each "Car Use" category and enter the total This chart can help "profile" your driving habits. trips in the "Car Usage Profile." Then add and record the First, record the actual mileage on your car odometer under number of miles you drove in each category to get a graphic "miles beginning." picture of where you are best able to focus your conservation Now you are ready to record HOW you use your car in each ) efforts. category of driving. After you make your first trip place an "X" in the box under the column corresponding to the day of the J Car Use Profile week you begin which best describes the type of trip and total Category ROUND TRIP miles traveled (1-5, 6-10, etc.). If you travel over Number of trips Weekly mileage total 20 miles round trip, write this figure in the appropriate box Work trips rather than making an "X." Continue this recording process for each round trip made in Family your car during the entire week. And if you take a v.acation by business car, be sure to record your mileage in the "Car Use Profile" Educational, box below. etc. At the end of the week, record the mileage on the odometer under "miles ending." Subtract the beginning mileage figure Social, etc. from final figure and record the total. Now you can "profile" how you used your car. Reading Vacation Social and Recreational Activities • Think twice before setting out on those spur-of­ Pleasure rides, visits to friends and relatives and the-moment local pleasure rides or visits to friends other social and recreational trips-together with and relatives. Do they really need that kind of sur­ vacations-consume 382 million gallons of gasoline prise? each week. The average family takes 3.5 such trips each week, with the majority being taken on • Why not try a nature walk or bike trip? Or even weekends and holidays. a bus ride downtown to the local museum or to see a Trips of this kind are not luxuries-but they are of a local sports or artistic presentation? You'll probably nature which allows for some easy savings in fuel find the spirit of family adventure and togetherness consumption without depriving anyone of the leisure • will more than make up for any slight inconvenience. activities so important to physical and psychological AAA club travel counselors offer members detailed well-being. Equally important is the fact that tourism planning advice on such things as selecting vacation employs four million persons and it means some $60 destinations, travel routes and tie-in transportation billion to the U.S. economy. arrangements, all designed with fuel savings in mind. Start off by taking a serious look at your vacation planning. This would be a good year to vacation in an area where you won't need your car as much to get Keeping Your Car In Tip-Top Shape around at your destination, a large metropolitan area, Proper care and maintenance of your car can mean for example, or a beach or mountain resort. If you will significant reductions in fuel consumption. be driving to your vacation destination, look into sight-seeing services offered locally for your trans­ Start out by having your car's engine thoroughly portation needs while there. tuned. MA motor club tests show that even minor This also could be your opportunity to advance in tune-ups can improve mileage by 10 percent. Other another travel direction-any direction-utilizing tests have shown that tune-ups can result in an im­ what MA refers to as the radius travel concept. It mediate 9 to 15% improvement in gasoline mileage. means systematically investigating all the recreational • Check spark plugs. Make sure yours are clean possibilities within a geographical circle, the size of and all firing properly. which is determined by the mileage you're budgeting • Next check distributor points. for pleasure travel. • Replace clogged and dirty air and oil filters. Your mileage budget can be adjusted upward to • Check for proper functioning of the automatic include longer trips if you're able to decrease use of choke-a sticking one will waste gas. gasoline proportionately for other uses, such as commuting to work. • Be sure the air-fuel mixture of the carburetor is precisely adjusted. Qualified travel counselors can assist you in match­ • An oil change should be part of every tune-up. ing your personally-budgeted fuel supply with your Use the correct weight oil as recommended in your travel interests. car-owner's manual. A heavier weight oil will force the engine to use more fuel to overcome the heavier oil's resistance, while an oil too thin may not provide Other suggestions: enough protection to prevent engine damage. •While you're gettingyourcartuned, check to see • If you know some friends who are planning a that the tires are properly balanced and wheels prop­ motoring vacation at the same time, why not try to erly aligned. If they're not, they can create drag, forc­ combine your trips? You also might consider taking a ing the engine to use more power-thus more plane, train or bus to your destination and rent a car gasoline-while shortening ti re life drastically. A bent for any local driving you need to do. frame could have the same effect.

10 11 • Check tire pressure on your car frequently. Good Driving Techniques Under-inflated tires increase rolling resistance and One of the major causes of poor fuel mileage for cut fuel economy. But don't over-inflate by more than many drivers is poor driving technique and poor two or three pounds. This could cause rapid wear and planning. Studies conducted by one MA club cut tire contact with the road, causing a safety hazard. showed gasoline efficiency could be increased by as Follow the manufacturer's recommendations. much as 44% if driving habits were improved over a • An often overlooked item of car care is the typical stop-and-go commuter route. radiator thermostat. A defective one can increase fuel Good planning is the best introduction to good consumption by increasing engine warm-up time in driving techniques: cold weather. Automatic brake adjusters also should be checked for improper operation which can create • If you own more than one car, use the more brake drag and increase fuel consumption. economical one for as much of your driving as pos­ sible, particularly for commuting to and from work, • Once you've had your car tuned, don't forget or local stop-and-go driving. about it. Keeping a car operating at peak performance and at peak fuel economy requires constant care. A • Plan your driving routes to avoid local bottle­ car needs to be tuned at least twice a year, spring and necks such as extra-long lights and congested streets. fall, or as recommended in your car-owner's manual. Use less-traveled roads and free-flowing highways whenever possible, relying on traffic reports over • When you fill up with fuel, choose the correct your car radio for assistance. This will help you avoid octane for your particular car. Using the wrong oc­ fuel-robbing stop-and-go traffic. Avoid rush hours tane might cause engine problems, spark plug foul­ and other peak traffic times whenever possible. ing and reduced gasoline mileage. Avoid a higher octane fuel than required. You'll be wasting money. • On long trips, start early in the morning to avoid heavy traffic and-in hot weather-minimize the Ask the attendant not to fill your tank to the brim. This can cause overflow if the car is parked on an incline, need for use of your air conditioner. Time your driv­ and fuel expansion in hot weather can lead to over­ ing to avoid rush hour traffic in urban areas, or plan flow even when the car is parked on level ground. your meal stops to coincide with these peak traffic periods. Make sure your gas tank cap is on tight-a loose one can allow gas to leak out. • Unnecessary extra weight in your trunk will cut • During this period of fuel uncertainties, many fuel economy. So keep baggage to a minimum when car-owners are buying lock-type gas caps. AAA ad­ taking a trip. Packing baggage on a roof rack also vises buyers to be sure that the cap selected is de­ creates fuel-robbing air resistance. signed for the specific make, model and year of the • Never carry spare cans of gasoline in your car vehicle on which it is to be used. Different models of trunk-that's extra weight you can definitely do with­ autos use various gas tank or cap venting systems. out. This practice can be extremely hazardous since a Use of an improper cap can create a vacuum as fuel is spark or a lighted cigarette meeting an accumulation drawn from the tank by the fuel pump. This could of vapors, or a collision, could set off an explosion. result in the serious consequence of a collapsed gas One gallon of gasoline has the heat energy force tank. Just because a gas cap fits doesn't mean that it (BTU's) of 50 pounds of dynamite. Instead, buy an will function properly on your car. Buy only one de­ inexpensive hand-operated pump for possible signed for your car. siphoning requirements. Do not attempt to use a siphon hose by mouth. Inhaled fumes or possible Keep an accurate record of the amount of gas used fuel ingestion can be dangerous. and the cost. Over a period of time you'll be able to check on fuel economy and perhaps discover ways to After good driving planning comes good driving improve performance even further. A drop in gas execution: mileage also will help you determine that it's time for • Begin the minute you fasten your safety belts and another tuneup. turn on your engine.

12 13 • Avoid extended warm-ups when starting a cold responds with the speed in top gear at which the engine. It may be necessary, on cold mornings, to engine produces peak torque. depress the accelerator once to set the automatic • When approaching a hill, build up speed early to choke-any added pumping of the accelerator will avoid fuel-robbing hard acceleration on the upgrade. only waste gas. Check the owner's manual for proper When accelerating with a manual transmission, shift procedure. up as soon as possible without causing the engine to "lug" or stumble. If the engine does "lug," the low • As soon as your car is drivable, accelerate gently carburetor vacuum condition that results will cause and drive slowly for a mile or so-your engine will increased fuel consumption. warm up faster and you'll save fuel. If your car is equipped with a manual choke, push it part way in as • You might want to consider installing a dash­ soon as the engine is running, then push it all the way mounted vacuum gauge calibrated in fuel economy in as soon as the car is safely drivable. ranges. Such gauges allow the driver to monitor fuel use and engine condition while driving. Cost is gen­ •Avoid unnecessary idling-which can consume erally between $5 and $12 at most auto parts stores. gas at the rate of a half gallon per hour. Idling more A great deal of fuel economy of your particular car than one minute will waste more gas than it takes to will depend on the optional equipment on the car re-start the engine. itself: • Don't rev up the engine and then quickly shut. it • Such options as air conditioning and-to a lesser off, thinking you've primed it to re-start. Actually, extent-even electrical accessories such as heaters, you've dumped raw gasoline into the cylinder walls defrosters and radios use more gasoline. AAA tests where it may wash away the protective oil film and have shown that when air conditioning is not in use increase engine wear when you re-start. It's also a fuel economy improves by 5 to 14% or more. Air waste of fuel. conditioning also adds weight-about 100 pounds • Even while you're driving you should still be -to a car, increasing fuel consumption even more planning. Look well ahead to spot slowdowns and red merely because of the extra weight. If you have it, use lights. Pace yourself to reach them when they turn it sparingly. green. A car uses much fuel when accelerating • An automatic transmission can be a gas-using op­ quickly from a complete stop. Keep a good space in tion. Manual transmissions generally use less gas, par­ front of you so you can adjust your speed gradually ticularly in small cars, although this may not hold true without closing the gap on the car ahead. If stops are in situations where frequent shifting is required. necessary, release the accelerator early and brake • Power steering also uses a bit more fuel. gradually. Some options can help conserve gasoline: • Smooth "footwork" is crucial to good gasoline mileage. You'll get the best fuel economy by smooth, • If you want air conditioning, for example, a light steady accelerator pressure for cruising conditions. exterior car color combined with light interior uphol­ Gradual acceleration and braking are also helpful. stery will reduce heat build-up and keep your air Hard acceleration pours more fuel into the engine for conditioner from having to work so hard. Tinted glass more power, but the fuel is incompletely burned and also helps. mileage suffers. • Fuel injection usually saves gasoline by more uniformly and efficiently distributing the fuel than do • You'll get the best fuel economy by traveling at carburetors. An electronic spark ignition system also moderate speeds. High speeds require more gasoline to overcome greater air resistance. Each is a gas saver since its improved spark means better combustion and less chance for fuel-robbing spark car's engine has a speed at which it operates most plug fouling. efficiently, depending on axle ratios, tire diameter, vehicle size and weight and other factors. Generally, • Top-quality radial tires usually will result in a 5 to this ideal speed is under 55 miles per hour and cor- 10% fuel saving because rolling resistance is reduced.

14 15 Steel-belted radials generally are even better than fabric-belted radials in this respect. • If you'll be doing a lot of open-road driving, a cruise control option may be worthwhile since such an accessory can maintain a steady speed, rarely using the carburetor's accelerator pump. Summary While some of the gasoline conservation measures we've described will affect only nominal savings individually, their collective impact can be great. Great enough to help revive the economy and pre­ vent tough controls on driving. They require your serious attention because the energy crisis is a very real problem involving all forms of energy, but most basically petroleum. Energy problems will continue to face the U.S. for at least several years until the nation gains greater total energy self-sufficiency in a variety of ways­ developing new sources and increasing productivity of existing sources. You can help a great deal by simply using your car more sensibly. When you take it easy on the gas you make it easy on yourself. You save your own precious energy and money. And you put the brakes on inflation and recession. Bea GAS WATCHER. Make 5 gallons do the work of6.

American Automobile Association 8111 Gatehouse Road, Falls Church, Va. 22042

Stock No. 2700 Printed In USA, 1975 An Index of Selected Consumer Federal Publications of Consumer Interest

Information Consumer Information Center

Spring 1975 "As a by-product of tax-funded TABLE OF AUTOMOBILES Three Rules for Maximum Tire Life. programs, the Federal Government 013C. 25¢. 9 pp. 1973. Tips on how acquires a vast amount of informa­ CONTENTS Antifreeze/Coolant. 001C. 35¢. 8 pp. to get full, safe mileage from your tion on products, services and other 1972. How antifreeze/coolant tires. Automobiles 3 subjects of consumer concern. It solution protects the car radiator Why Unleaded Gas? 017C. Free. has an obligation to share this Budget, Finance, and Insurance 3 in both winter and summer driving; 2 pp. 1974. Availability of unleaded information with the public in a Child Care 3 types of antifreeze/coolant, plus gas required for anti-pollution useful form . ... " selection and proper use. Clothing, Fabrics, and devices in 1975 cars. Laundering 4 Automobile Batteries: Their GERALD R. FORD Selection and Care. 002C. 65¢. BUDGET, FINANCE, AND PRESIDENT OF THE Consumer Education and 20 pp. 1971. Protection 4 UNITED STATES Car Care and Service. 250C. 35¢. INSURANCE Energy Conservation and September 4, 1974 16 pp. 1974. How to recognize the Budgeting for the Family. 018C. Environmental Protection 5 symptoms of common automotive 25¢. 16 pp. 1972. Steps in develop­ It is our pleasure to bring you the Food 6 problems; tips on working with your ing a budget with charts for latest quarterly edition of the Purchase mechanic. estimating income, planning family Consumer Information Index, Preparation and Storage Check the Mileage (Odometer) spending, and recording expenses. a listing of approximately 250 Diet and Nutrition 7 Before You Buy. 003C. 25¢. 4 pp. Insurance for Renters and selected Federal consumer-oriented General 1973. Explains the 1973 federal law Homeowners. 020C. Free. 4 pp. publications. The Index includes Vitamins and Minerals prohibiting setting back the mileage 1974. publications that tell how to buy, Health 7 on new and used motor vehicles. use, and care for consumer Insurance for Your Health, Car, General Gasoline Is Made To Explode. and Life. 021C. Free. 6 pp. 1974. products; others discuss such Cigarettes and Alcohol 004C. Free. 4 pp. 1974. Hazards of Mail Order Insurance. 023C. 25¢. consumer-interest subjects as Medicine and Drugs storing gasoline in the home and child care, financial planning, 8 pp. 1971. Four common insurance Housing 9 automobile. health, home maintenance, frauds; how to protect yourself. Appliances and Household Gasoline: More Miles Per Gallon. nutrition, energy conservation, Furnishings 005C. 35¢. 12 pp. 1974. How a car The National Flood Insurance Pro· and consumer protection. Building, Buying, and engine works; gas selection; gram. 252C. Free.19 pp. 1972. How The Index was compiled by the Financing maintenance tips; driving tech­ to obtain federally subsidized insur­ Consumer Information Center of the Home Maintenance and niques to improve car performance ance in flood-prone areas. General Services Administration. Improvements and lower costs. Questions and Answers about No­ The Center was established by Home Safety Fault Auto Insurance. 253C. Free. Presidential Order in October 1970 Guide to Octane Ratings. 006C. Landscaping, Gardening, and Free. 1 p. 1974. 4 pp.1974. to encourage Federal agencies to Your Right to Credit. 025C. Free. Pest Control 11 The Hazards of "Mixing" Tire Types. develop and release information of 6 pp. 1974. Discusses credit for Older Americans 12 007C. Free. 2 pp. 1972. interest to consumers. The Center women, young people, retirees, is also responsible for increasing Recreation, Travel, and Miles Per Gallon Ratings for 1974 and those with low incomes. public awareness of this Information. Leisure Activities 12 Cars. 009C. Free. 16 pp. 1974. Also explains gas mileage label We welcome your comments, Other Publications of CHILD CARE recommendations, and suggestions Consumer Interest 13 used by dealers on 1974 foreign on subjects for future publications. and domestic cars. Child Development in the Home. Ordering Instructions 14 Miles Per Gallon Ratings for 1975 027C. 45¢. 20 pp. 1974. How to Order Blanks 15, 16 VIRGINIA H. KNAUER 14, Cars and Light-Duty Trucks. 236C. build self-confidence and self­ Special Assistant to the Free. 10 pp. 1974. Excludes most discipline in the preschool child. President for Consumer Affairs California-certified cars. Children's Books. 028C. 30¢. 16 pp. Miles Per Gallon Ratings for 1975 1974. A descriptive listing of ARTHUR F. SAMPSON California-Certified Cars and Light· selected books published in 1973 Administrator Duty Trucks. 251C. Free. 11 pp. 1974. for preschool through junior high General Services Administration Motor Vehicle Defects Investiga­ school age. Prepared by the Library tions. 010C. Free. 1974. Lists new, of Congress. pending, and completed federal Child Safety. 029C. Free. 16 pp. Investigations of motor vehicle 1974. Purchase, safe use, and care safety defects; includes recall of cribs, tricycles, and playground notices; revised monthly. equipment.

3 Don't Be Gypped. 054C. Free. 4 pp. What About Metric. 244C. $1.10. Don't Lead Your Child To Drug Your Child's Emotional Health. 1971. Bait and switch advertising; 18 pp. 1973. Advantages and grow­ Abuse. 031C. 25¢. 13 pp. 1972. Tips 044C. 25¢. 13 pp. 1973. Discusses what it is and how to protect your­ ing use of the metric system; for parents of the young child on normal behavior in children and self. conversion tables for weight, developing healthy attitudes describes symptoms of emotional FDA Consumer. 056C. $8.55. Annual length, volume, and temperature. towards medicine. disturbance. Subscription (10 issues). Informs Where You Shop Is as Important as Facts about Adolescents. 032C. CLOTHING, FABRICS, AND consumers of recent developments What You Buy. 259C. Free. 6 pp. 30¢. 14 pp. 1972. Discusses their in the regulation of foods, drugs, 1974. Pros and cons of shopping at physical and emotional needs and LAUNDERING and cosmetics by the Food and different types of stores. problems; lists organizations pro­ Clothing Repairs. 045C. 60¢. 30 pp. Drug Administration. Use subscrip­ viding additional information. 1970. Twenty-five repairs to pro· tion blank on page 14 of Index. Finding the Best Day Care for Your long the usefulness of garments. Get Credit for What You Know. ENERGY CONSERVATION Children. 033C. 30¢. 14 pp. 1974. Fibers and Fabrics. 046C. 90¢. 237C. 25¢. 8 pp. 1974. How to get AND ENVIRONMENTAL Good Food News for Kids. 034C. 28 pp. 1970. Basic information about high school and college credit PROTECTION Free. 8 pp. 1974. Games and puzzles the properties. uses, and care of without formal schooling. to teach children about food. the principal natural and man-made Guide to Choosing a Vocational Checking Your Utility Bills. 260C. One-Parent Families. 037C. 30¢. fibers. School. 058C. Free. 6 pp. 1973. Free. 4 pp. 1974. How to read gas 12 pp. 1974. Practical advice on Flammable Fabrics. 047C. Free. Questions to ask before signing the and electric meters, calculate your adjusting to problems and 6 pp. 1974. Includes purchase, safe contract; rights of veterans and utility costs, and understand the relationships. use, and proper laundering of flame· servicemen in correspondence company's billing methods and Safe Toy Tips. 039C. Free. 4 pp. 1974. retardant fabrics. courses. forms. Selection, care, supervised use, and Reading the Labels on Apparel and Clean Air and Your Car. 067C. Free. storage. How to Cancel Door-to-Door Sales. Household Textiles. 048C. Free. OGOC. Free. 4 pp. 1974. Explains 24 pp. 1974. How emission controls So You're Going To Be a New· 6 pp. 1974. affect air pollution and car Father. 040C. 55¢. 32 pp. 1973. How 3-day cooling-off period. Removing Stains from Fabrics. operation. to handle money worries, mental lnformaci6n para el Consumldor. 049C. 40¢. 32 pp. 1968. Stain Energy and Kids. 068C. Free. 2 pp. stress, and physical fears of pros­ 061C. Free. 8 pp. 1973. Selected list removers and instructions for 1974. Johnny Horizon's tips for pective parents. of federal consumer publications in removing 142 common stains. saving energy. Tax Deductions for Child Care. 254C. Spanish. Also available In bulk Free. 4 pp. 1974. Tax deductions Soaps and Detergents for Home quantities. Energy Efficiency in Room Air Con· Laundering. OSOC. 25¢. 8 pp. 1973. ditioners. 069C. Free. 4 pp. 1974. working mothers and/or fathers Mall Fraud Laws. 062C. 35¢. 27 pp. can take for child care expenses. 1971. Common mall fraud situ· How to Set Up a Recycling Center. Teach Children Fire Will Burn. ations; how to protect yourself. 070C. Free. 14 pp. 1974. What to 041C. 40¢. 24 pp. 1971. Guidelines collect, operating costs and equip· Quackery. 064C. Free. 2 pp. 1971. ment, recruiting volunteers, and for acquainting children with the Common medical fraud (quackery) dangers and consequences of fire, publicizing the center. situations; how to protect yourself. electric shocks, and explosions; Johnny Horizon '76 Children's Kit also tells how to prevent home fires Shopper's Guide. 257C. $5.70. 368 To Improve the Environment. 071C. and what to do in case of fire. pp. 1974. USDA yearbook for 1974. Free. 1974. Fact sheets on ecology Teenagers' Gulde to Babysitting. Illustrated guide to help families for children and adults; plus a 255C. 70¢. 48 pp.1974. How to care use their incomes to best advan­ pledge card, bike sticker, and litter for and entertain children of all CONSUMER EDUCATION tage; also discusses food and nutri­ bag. ages with emphasis on handling tion, gardening, decorating a home, Once There Lived a Wicked Dragon. emergencies. AND PROTECTION and recreation. 073C. Free. 32 pp. 1974. Story book Toys: Fun in the Making. 042C. 55¢. Consumer News. 052C. $4.00. Shopping for Educational Services. to teach children about ecology; 32 pp. 1973. Simple instructions for Annual Subscription. Twice a month 258C. Free. 4 pp. 1974. Criteria for includes pictures to color. creating toys and games from throw­ newsletter reports federal consumer selecting a junior college or college; Questions and Answers about away materials in the home. actions, programs, and new publica­ discusses accreditation and lists Carpools. 074C. Free. 2 pp. 1974. Young Children and Accidents in tions. Consumer Register, a regular sources for further information. Includes insurance Information. the Home. 043C. 65¢. 36 pp. 1974. supplement, lists proposed govern· Truth in lending. 065C. Free. 6 pp. Recycling and the Consumer. 076C. How to protect your child from falls, ment rulings and tells consumers 1974. Explains consumers' rights Free. 1974. What and why to recycle, animal bites, suffocation, poisoning, how to comment on these proposals. under federal law to obtain full in poster format; includes a bumper burns, etc.; includes detachable Use subscription blank on page 14 information on the terms of credit. sticker. first aid chart. of Index. 5 4 Tips for Energy Savers. 077C. Free. Standards for Meat and Poultry Seasoning with Herbs and Spices. Organic and Inorganic Food. 265C. 10 pp. 1974. Hints for conserving Products. 098C. Free. 7 pp. 1973. 106C. Free. 4 pp. 1973. Free. 5 pp. 1974. Describes these energy in household heating, cool­ Minimum meat and poultry content Soybeans in Family Meals. 107C. terms. ing, appliance use; in the workshop; for 232 food products (e.g., chili 35¢. 26 pp. 1974. Tips for using and in family activities. con carne, frozen dinners, frank­ soybean products in menu planning; VITAMINS AND MINERALS Tips for Motorists. 078C. Free. furters, etc.). includes recipes. Myths about Vitamins. 140C. Free. 8 pp. 1974. Car maintenance and What Happened to Mushrooms? 8 pp. 1974. Discusses claims made driving techniques for improving gas 099C. Free. 9 pp. 1974. Discusses about various vitamins; includes a mileage; suggestions for curbing the 1973 recall and the prevention DIET AND NUTRITION chart of recommended daily allow­ car use. of future problems. ances and a list of the best vitamin What's in Your Food Bill? 100C. GENERAL sources. Calories and Weight. 079C. $1 .00. FOOD Free. 5 pp. 1974. Tips for cutting A Primer on Dietary Minerals. 266C. 100 pp. 1974. Pocket guide indicates your grocery bill. Free. 4 pp. 1974. Describes minerals calories per portion of 536 common PURCHASE Your Money's Worth in Foods.101C. necessary for good health; lists best foods; discusses planning weight Antibiotics in the Foods You Eat. 50¢. 26 pp. 1974. Guides for budget­ food sources. 088C. Free. 2 pp. 1972. Use of reduction diets. ing, menu planning, and shopping Vitamin E-Miracle or Myth? 145C. antibiotics in food-producing ani­ Eat a Good Breakfast To Start a for best values. Free. 4 pp. 1973. Discusses these mals, potential hazards, steps being Good Day. OBOC. 25¢. 8 pp. 1972. claims being made about vitamin E. taken to prevent unsafe residue Ideas for nutritious and economical levels. breakfasts. Vitamins, Minerals, and FDA.146C. Free. 2 pp. 1973. Explains new fed­ Federal Food Standards. 090C. Free. Family Fare-A Gulde to Good Nutri­ eral regulations to protect consum­ 4 pp. 1974. Brief summary of vol­ tion. 263C. $1.00. 91 pp. 1974. Daily ers against hazards from toxic untary and regulatory standards for nutritional requirements; buying, amounts of nutrients. quality, identification, and storing, and preparing food. wholesomeness. What about Vitamin C? 267C. Free. Fats in Food and Diet. 264C. 30¢. 10 Food and Your Money. 091C. Free. 4 pp. 1974. Discusses the benefits, pp. 1974. Saturated and unsaturated 8 pp. 1973. Outlines underlying possible dangers, and claims made causes of changes in food prices. fat content of common foods; in­ for vitamin C; lists natural food cludes a cholesterol content chart Teacher's guide suggests educa­ sources. tional activities and projects. and discusses the effects of dietary The Food Labeling Revolution. fat on health. 092C. Free. 4 pp. 1974. Explains PREPARATION AND STORAGE Food Additives. 081C. 25¢. 8 pp. HEALTH new regulations requiring a food Can Your Kitchen Pass the Food 1973. Describes what they are, label information panel. Storage Test? 102C. Free. 8 pp. why they are necessary, and how GENERAL Food Shopper Language. 261C. Free. 1974. Checklist of food storage they are regulated. Acupuncture. 108C. 30¢. 7 pp. 1973. 9 pp. 1974. Layman's guide to prod­ hazards and how to correct them, Food and Your Weight. 082C. 50¢. History and philosophy of this uct terms used in the grocery store with emphasis on the proper use 37 pp. 1973. Suggestions for con­ ancient Chinese treatment of and food ads. of refrigeration. trolling weight; plans for nutritious disease; recent medical develop­ Hot Dog Labels. 093C. Free. 2 pp. Feeding a Crowd. 262C. Free. 7 pp. weight reduction diets; lists ments; precautions to take when 1974. New federal regulations for 1974. Safety tips for preparing and calories per portion of common considering acupuncture. hot dogs and cooked sausage. serving food for a party. foods. Adult Physical Fitness. 109C. 70¢. How to Buy Meat for Your Freezer. Food Safety.103C. Free. 8 pp. 1974. 64 pp. 1972. Graduated fitness pro­ 094C. 35¢. 28 pp. 1974. Food Is More Than Just Something Facts about food-borne illnesses. To Eat. 085C. Free. 32 pp. 1973. gram for adults who have not Keys to Quality. 095C. Free. 7 pp. exercised regularly. 1973. Pointers for assuring quality Freezing Combination Main Dishes. Layman's guide to nutrition includes and economy in food buying; 104C. 30¢. 22 pp. 1973. Selection of functions of the major nutrients, Birth Control Methods for Family explains USDA grades; lists 15 ingredients and packaging their importance to good health, Planning. 110C. 25¢. 6 pp. 1973. booklets with more detailed food materials; recipes and instructions and where to find them in today's Breast Self-Examination. 268C. 40¢. buying information. for preparation, packaging, freezing, foods; includes a daily food guide. 11 pp. 1974. Step-by-step illustrated Questions and Answers about and reheating. Nutrition Labeling-Terms You instructions for self-examination; Canned Foods. 096C. Free. 2 pp. Let's Cook Fish.105C. $1.25. 54 pp. Should Know. 086C. Free. 4 pp. stresses importance of a regular 1971. 1972. Nutritional importance, 1973. Includes chart of U.S. Recom­ routine to detect changes in the Questions and Answers about selection, storage, preparation, and dended Daily Allowances for sound breast which may or may not be Hamburger. 097C. Free. 2 pp. 1974. recipes. nutrition. early signs of cancer.

6 7 Cancer, What To Know, What To VD and You.129C. 25¢. 5 pp. 1973. The Pill. 141C. Free. 3 pp. 1973. Room Air Conditioners. 156C. 70¢. Do About lt.112C. 25¢. 8 pp. 1972. Symptoms and dangers of venereal How birth control pills work; who 24 pp.1972. How they work, selec­ Cause of Heart Attacks: Hardening disease. should not take them; possible tion, use, and maintenance. of the Arteries.113C. 30¢.16 pp. Watch Your Blood Pressure.130C. side effects. Safe Use of Microwave Ovens. 1972. Free. 28 pp. 1974. Hazards of high A Primer on Mediclne.142C. Free. 157C. Free. 2 pp. 1974. Includes Facts about Bottled Water. 115C. blood pressure and how to 6 pp. 1973. How to buy, use safely, purchasing tips. Free. 2 pp. 1974. control it. and store over-the·counter and Safe Use of Space Heaters.158C. prescription drugs. The Great Feminine Spray Explo­ ---- Free. 4 pp. 1974. Rubella (German Measles). 143C. sion. 117C. Free. 2 pp. 1974. Facts TV Fire and Shock Hazards. 159C. 25¢. 8 pp. 1970. Hazards to pregnant about effectiveness of and reactions Free. 3 pp. 1974. Precautions and women and importance of vaccinat­ to these products; proposed FDA proper maintenance for safe use. ing young children. regulations regarding their adver­ Used Furniture.160C. 25¢. 8 pp. tising and labeling. Vaccines: An Update. 144C. Free. 1973. How to select serviceable, 2 pp. 1973. What vaccines are economical secondhand furniture. Headaches. 120C. 25¢. 19 pp. 1971. available, who should get them, and Vacuum Cleaners.161C. 35¢. 16 pp. Types of headaches, their causes, under what circumstances they and what you can do to relieve them. should be given. 1972. Selection, use, and care. Hearing Aids. 121C. 85¢. 32 pp. Washers and Dryers.162C. 75¢. 24 pp. 1972. Selection, use, and 1971. Selection, maintenance, and HOUSING care; causes of hearing loss. CIGARETIES AND ALCOHOL maintenance. Alcohol: Questions and Answers. APPLIANCES AND Hypoallergenic Cosmetics.123C. BUILDING, BUYING, AND 131C. 35¢. 16 pp. 1971. HOUSEHOLD FURNISHINGS Free. 2 pp. 1974. How they differ FINANCING from regular cosmetics. Smoking Self-Test for Teenagers. Buying a Sewing Machlne.147C. 25¢. Adding Carports, Garages, and Stor­ 132C. 35¢. 15 pp. 1974. Series of 12 pp. 1973. How to select a ma­ If You're Coloring Your Hair. 269C. age Space. 274C. Free. 5 pp.1974. quizzes that explore your views on chine suited to your sewing needs. Free. 8 pp. 1974. How different types smoking. Quiz results of nationwide Includes checklist for determining of hair colorings work, possible haz­ survey given for comparison. Buying a Used Appliance. 272C. 30¢. space needs. 7 pp. 1974. Where to shop for used ards, and tips for safe, effective use. Benefits of Soil Surveys. 275C. 25¢. Someone Close to You Drinks Too major appliances, including demon­ Patients as Partners in Their Own 7 pp. 1974. How soil surveys before Much.133C. 40¢. 15 pp. 1973. Tips strator models; terms to know and Health Care. 270C. Free. 8 pp. 1974. building can help you avoid prob­ on dealing with an alcoholic; questions to ask before buying. Your responsibility as a patient to includes a list of organizations that lems of flooding, erosion, uneven Buying Small Appliances. 148C. know about and properly use any can help. settling, high water tables, and sur­ medicine prescribed by a physician; Free. 7 pp. 1974. Includes hair face bedrock. The Surprising News about Women stylers and dryers, electric mani­ warns against excessive or careless Buying Lots from Developers. 164C. and Smoking. 134C. 25¢. 4 pp. 1974. cure sets and toothbrushes, fondue use; special section on antibiotics. 45¢. 28 pp. 1973. Questions to ask Unless You Decide To Quit, Your pots, etc. Radiation: Benefit vs. Risk. 271C. Problem Isn't Going To Be Smoking; about a property and the contract Free. 3 pp. 1974. Radiation use in Carpet and Rugs. 149C. 5511!. 32 pp. before you sign; what information Your Problem's Going To Be Staying 1973. Fibers, textures, regulations medical diagnosis and therapy, re­ Alive. 135C. 30¢. 9 pp. 1973. Includes the developer must give you under search, power sources. and house­ for labeling and flame-resistance, the law. tips for cutting down on smoking selection, installation, care, and hold conveniences; emphasizes Closing Costs. 165C. Free. 4 pp. as well as quitting. cleaning. safe use of medical x-rays. 1973. What they are, what docu­ Floor Coverings. 273C. Free. 5 pp. Sunlamps.124C. Free. 2 pp. 1971. MEDICINE AND DRUGS ments to expect at closing, average 1974. Advantages and disadvantages Precautions for safe use. Aspirin. 137C. Free. 2 pp. 1972. closing costs, and shopping for a Composition, quality controls, and of wood, linoleum, terracotta, slate, loan when buying a house. Tooth Care. 125C. 40¢. 24 pp. 1973. mosaic tile, etc. safe use. Construction Guides for Exposed Typical Poisonous Plants.126C. 70¢. Brand vs. Generic Drugs. 138C. Free. Kitchen Stove Safety. 152C. Free. Wood Decks. 166C. $1.25. 78 pp. 23 pp. 1973. Includes descriptions, 3 pp. 1973. Discusses new federal 3 pp. 1974. 1972. pictures, and antidotes. standards to assure quality and Portable Dehumidifiers. 153C. 25¢. Designs for Low-Cost Wood Homes. Understanding Mental Health.127C. purity in generic and brand name 8 pp. 1974. Selection, features, safe 167C. 50¢. 30 pp. 1969. Sketches 30¢. 11 pp. 1973. Recognizing and drugs. use, and care. and model floor plans; how to select coping with depression, mood Diet Pills. 139C. Free. 2 pp. 1973. Purchasing Hi-Fl Systems, TV, and economical, durable materials; changes, and related mental stress Limits of usefulness and dangers Tape Recorders.155C. Free. 6 pp. includes order forms for working in yourself and others. of abuse. 1974. plans.

8 9 Exterior and Interior Wall Materlals. Wise Home Buying.180C. Free. 32 Simple Plumbing Repairs. 191C. 25¢. Growing Bonsai. 206C. 35¢. 21 pp. 276C. Free. 4 pp. 1974. Advantages pp. 1972. Information on choosing 14 pp. 1972. Equipment and methods 1973. Guide to selecting and grow­ and disadvantages of aluminum a real estate broker, locating a for repairing faucets, valves, leaks ing miniature trees and vines in siding, stucco, brick, wet and dry house, inspecting an old house, in pipes and tanks, frozen pipes, containers; propagation, care, and walls, paneling, wallpaper, moldings. and how to finance a home. clogged drains, and toilets. display. etc. Wood-Frame House Construction. Tools and Their Uses. 192C. $1.95. Keeping the Bad Bugs Out Naturally. Fireplaces and Chimneys. 169C. 40¢. 181C. $2.60. 223 pp. 1970. Compre­ 179 pp. 1971. Comprehensive man­ 280C. free. 2 pp. 1974. How to pro­ 23 pp. 1971. Selection of materials, hensive, illustrated handbook ual on selecting, using, sharpening, tect garden plants from harmful in· construction, and maintenance. provides detailed instructions and and repairing hand tools and power sects without using pesticides. basic principles for building and tools used to work on your home, Lawn Weed Control. 281C. 30¢. 24 firewood for Your Fireplace. 170C. insulating. boat. and car. pp. 1971. Identification of crab grass 25¢. 7 pp. 1974. Burning character· Wood Siding. 182C. 25¢. 13 pp. and other weeds; selection, precau­ istics of various woods, where and HOME SAFETY how to buy firewood, and tips on 1973. Discusses installation, tions, and use of herbicides; care Accident Prevention in the Home. of equipment. safe fireplace use. finishes, and maintenance; plus tips on insulation. 194C. Free. 11 pp. 1974. Fact sheets Make Your Own Terrarium. 207C. Home Buying Veteran.171C. Free. on non-glass doors, glass door and Free. 2 pp. 1974. Lists materials 29 pp. 1971. Useful home buying HOME MAINTENANCE AND window injuries. and carbon mon­ needed, appropriate plants, and oxide. information for non-veterans as well IMPROVEMENTS care. as veterans; choosing a neighbor· Designing Kitchens for Safety and hood, a lot, a house: checklist for Finding and Keeping a Healthy Efficiency. 197C. 25¢. 10 pp. 1974. Inspecting a house: financing. House. 183C. 60¢. 20 pp. 1974. fire Extinguishers. 198C. 65¢. Home Heating. 172C. 40¢. 24 pp. How to Identify and protect your 10 pp. 1971. Types offires; selec­ home from water damage, wood , 1968. Installation, operation, main· tion, location, and use of various decay, and destructive Insects such tenance, and costs of the most extinguishers; what to do In case as termites, beetles, and carpenter commonly used heating systems. of fire. - ,,-....- ants. Fire Safety. 199C. Free. 6 pp. 1974. Homeowner'& Glossary of Building Household Cleaners. 185C. 30¢. "/- Terms. 173C. Free. 16 pp. 1974. Prevention tips as well as what to 9 pp. 1974. Selection and safe use. do In case of fire; of particular - House Construction: How To Imaginative Ways with Bathrooms. Interest to apartment dwellers. Reduce Costs. 174C. 25¢. 16 pp. 277C. Free. 6 pp. 1974. Accessories, Protecting Mobile Homes from 1973. Guidelines for savings in storage areas. and safety features High Winds. 200C. Free. 16 pp. 1974. location, style, interior arrange· to consider when planning a new or ments. and in selection of remodeling an old bathroom. Safety of Cooking Utensils. 202C. Safe Use of Pesticides around the materials and utilities. Free. 2 pp. 1972. Safety of Teflon Interior Wiring. 278C. $1.45. 119 pp. and aluminum cooking utensils. Home. 208C. Free. 10 pp.1974. Tips 1974. Step-by-step procedures for Information on Moving Your House­ Stair Safety. 203C. Free. 3 pp. 1974. on safe storage, application. and hold Goods. 175C. 55¢. 17 pp. 1972. installing and repairing home wiring disposal of pesticides. Vinyl Chloride. 279C. Free. 2 pp. Consumers' guide for obtaining safely; lists necessary tools and 1974. Potential dangers of products Safe Use of Power Lawn Mowers estimates and accurate weights of equipment. containing vinyl chloride; how to and Hedge Trimmers. 282C. Free. 5 shipments, preparing articles for Paint and Paintlng.188C. 85¢. 32 pp. pp.1974. 1971. For both interior and exterior return banned substances for re­ the movers, filing loss or damage Transplanting Ornamental Trees painting. selection of equipment funds. claims with the moving company. and Shrubs. 209C. 25¢. 11 pp. 1972. and paint or finish. preparation of Making Basements Dry.177C. 25¢. surface, and application. The following publications are 10 pp. 1970. Selection of building LANDSCAPING, GARDEN· Protecting Your Housing Investment. guides to selection, planting, and site; selection and care of materials ING, AND PEST CONTROL care: and dehumidifying equipment. 296C. Free. 34 pp. 1974. Mainte­ nance of heating systems, plumb· Better Lawns. 204C. 40¢. 32 pp. Growing Flowering Annuals. 283C. Questions and Answers on ing, and building structure; treat­ 1974. Preparation, selection of 30¢. 16 pp. 1973. Condominiums. 179C. free. 48 pp. ment of special problems such as grasses, planting, and care. Growing Flowering Perennials. 1974. pest control and moisture. Controlling Household Pests. 205C. 210C. 50¢. 32 pp. 1970. Rent or Buy? 245C. 80¢. 32 pp. 1974. Simple Home Repairs.190C. 55¢. 40¢. 32 pp. 1971. Procedures and Growing Vegetables in the Home How to compare current and long. 14 pp. 1973. Guide to repairing and proper pesticides for controlling Garden. 284C. 80¢. 56 pp. 1973. range costs of renting vs. buying replacing faucets. electric plugs, rats, cockroaches, termites, clothes Minigardens for Vegetables. 285C. a home. screens, tiles, etc. moths, carpet beetles, etc. 30¢. 12 pp. 1974.

10 11 Your Social Security. 026C. 35¢. Selecting and Growing House Federal Requirements for Recre· 26 pp. 1974. Who is eligible; OTHER PUBLICATIONS OF Plants. 211C. 40¢. 32 pp. 1968. ational Boats. 221 C. Free. 16 pp. amounts of payments; how to apply Selecting and Growing Shade Trees. 1973. Detailed Information on CONSUMER INTEREST for Social Security and Medicare 212C. 30¢. 22 pp. 1973. safety requirements and helpful benefits. Brand Name Listing. 231C. 60¢. Selecting.Shrubs for Shady Areas. suggestions for safe and pleasure­ 42 pp. 1974. Annual Issue lists by 213C. 3011. 16 pp. 1974. able boating. brand name approximately 800 Summer Flowering Bulbs. 215C. 30¢. RECREATION, TRAVEL, Festival U.S.A.1975. 288C. $1.50. consumer products which were 16pp.1971. AND LEISURE ACTIVITIES 74 pp. 1974. Chronological descrip­ certified by suppliers during 1973 tive listing of more than 5,000 an­ as being Identical to those pur­ Air Travelers' Fly-Rights. 216C. Free. nual festivals, fairs, and sporting chased by the government under 16 pp. 1973. Air passengers' rights events. federal specifications. OLDER AMERICANS and responsibilities; includes infor­ Fifty Birds of Town and City. 222C. mation on fares, denied boarding Consumer's Guide to Postal $1.20. 50 pp. 1974. Description of A Brief Explanation of Medicare. compensation, baggage loss, Services and Products. 233C. Free. birds, their habitats, and foods; 111C. 25¢. 13 pp. 1973. 18 pp. 1973. Includes information charter flights, etc. with color illustrations. Budgeting for the Retired Couple. Attracting and Feeding Birds. 217C. on insured, registered, and certified 019C. 25¢. 14 pp. 1973. Considera­ Gulde to the National Parks. 289C. mail; and how to guard against mail 25¢. 11 pp. 1973. 35¢. 6 pp. 1974. Lists seasonal and tions In planning a retirement Backpacking Gear. 286C. Free 6 pp. fraud. budget; includes cost of living com­ year-round activities of nearly 300 1974. Determining your needs, parks; includes highway map. Dishing Up the Dog Food. 234C. parison for retired couples living in where to shop, and approximate free. 3 pp. 1973. Nutritional content In Pursuit of a Summer Tan. 290C. selected cities. and purity of pet food and nutrition price ranges. Free. 8 pp. 1974. Precautions for Choosing a Nursing Home.114C. requirements of pets. 50¢. 32 pp. 1972. Kinds of nursing tanning safely; describes different homes, licensing requirements, and sunblocking and suntan products. federal Benefits for Veterans and a checklist of what to look for In Know Before You Go. 223C. 55¢. Servicemen with Miiitary Service special services, atmosphere, and 24 pp. 1974. What items the over­ since January 31, 1955. 024C. Free. 8 pp. 1972. Emphasis on educational safety. seas traveler may bring back duty­ assistance. Community Services for Older free and in what quantities; Americans. 232C. 60¢. 36 pp. 1973. restricted Items; shipping pointers. Federal Benefits for Veterans with Includes a checklist of community Selecting Luggage. 224C. free. Military Service before February 1, activities. 3 pp. 1974. Size, construction, and 1955. 128C. Free. 19 pp. 1972. The Fitness Challenge ••• in the other features. How To Pack and Wrap Parcels for Later Years.116C. 75¢. 28 pp. 1973. Swimming Pools. 291C. Free. 2 pp. Malling. 239C. Free. 13 pp. 1973. 1974. Construction, use, and main­ For older persons, illustrated exer­ How To Prevent and Remove tenance, with emphasis on safety. cise programs for different levels Mildew. 240C. 25¢. 12 pp. 1971. of activity; stresses the value of Tent Flammability. 227C. free. regular exercise. Backpacking in the National forest. 2 pp. 1974. Investing in Gold.187C. Free. 2 pp, 218C. 40¢. 28 pp. 1974. Pointers for 1974. Where it can be purchased Food Guide for Older Folks. 084C. United States .Postage Stamps and 40¢.19 pp. 1974. Meal planning, backpacking, necessary equipment, and in what units; discusses some and a list of backpacking areas. Postal Stationery. 228C. Free. 20 pp. of the risks. buying, and preparing foods to as­ 1972. History and production of sure adequate nutrition for persons Bicycle Safety. 219C. Free. 3 pp. stamps, first day Issuances, and Keeping Record&-What to Discard. over 60 years of age. 1974. postal stationery; plus tips for the 241C. Free. 5 pp. 1974. Household Protection for the Elderly. 063C. Camping in the National Park Sys­ beginning stamp collector. and family records, and other docu­ tem. 287C. 55¢. 28 pp. 1974. Descrip­ ments that should be kept; when to Free. 6 pp. 1971. How to help an Vacation Plannlng: Tips for Trips to tive listing includes information on use a safe deposit box. elderly person protect himself from Save You Gas. 292C. Free. 8 pp. number of sites, fees, sanitary facil­ common frauds such as extra in­ 1974. Dude ranches, farms, and Merchandising Your Job Talents. come schemes, retirement land ltles, recreation, etc. houseboating are among the differ­ 242C. 50¢. 28 pp. 1974. Information deals, and referral selling. Documents from America's Past. ent vacation options discussed. on preparing a resume, writing a 220C. Free. 24 pp. 1974. Descriptive You, the Law, and Retirement. 066C. You and Your Passport. 230C. 45¢. letter of application, interviewing catalog lists books and reproduc­ 60¢. 38 pp. 1972. General advice on 18 pp. 1973. Explains how and for a job. tions of historical documents avail­ why, how, and when to see a law­ where to apply for a passport; when able from the National Archives; Summer Employment. 293C. 25¢. yer; particularly helpful for retire­ visas and immunizations are 6 pp. 1974. What types of jobs are includes order blank. ment planning. necessary; plus other tips. available; when and how to apply. 12 13 Where to Write for U.S. Birth and Center, Pueblo, Colorado 81009. For ORDER BLANK Death Records. 294C. 25¢. 9 pp. more prompt service use the mail TO ORDER: Indicate quantity and total price beside each publication desired. Fill in 1972. order forms on pages 14, 15 and 16. Mailing Label below (it will be used to return your order). Detach Order Blank page, enclose remittance (check, GPO coupons, or money order payable to Superintendent A Working Woman's Guid~ to Her BECAUSE OF LIMITED STOCKS, Job Rights. 295C. 60¢. 38pp. 1974. of Documents-please do not send stamps), and return to: Consumer Information, ORDERS FOR FREE PUBLICATIONS Public Documents Distribution Center, Pueblo, Colorado 81009. Comprehensive manual for the MUST BE RESTRICTED TO NO MORE working woman; includes informa­ THAN TWO COPIES OF ANY SINGLE Prepayment on sales documents is required. 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U.S. DEPARTMENT OF HDUSING AND URBAN DEVELOPM ENT..Ijfj> c

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SECRETARY ------Executive Assistant to the Secretary ______Administrative Officer ______Under Secretary------Executive Assistant to the Under Secretary ____ _ Deputy Under Secretary for Field Operations ___ _ Assistant to the Secretary for Public Affairs ___ _ Assistant to the Secretary for Energy Affairs __ _ Assistant to the Secretary for Programs for the Elderly and the Handicapped______Assistant to the Secretary for Labor Relations __ Spi:cial As.si~tant to the Secretary for Interna· tional Liaison ______General CounseL------Deputy General CounseL ______Associate General Counsel, Legislation ______Associate General Counsel, Housing ______Associate General Counsel, Equal Opportunity, Litigation and Administration______Associate General Counsel, Community Develop· ment ------Assistant Secretary for Legislative Affairs ______Deputy Assistant Secretary______Director, House Liaison ______Director, Senate Liaison ______Assistant Secretary for Community Planning and . Development ------Deputy Assistant Secretary ______Executive Assistant to the Assistant Secretary__ Director, Office of Management______Director, Office of Field Support------"----­ Director, Office of Community Development Programs ------Director, Office of Planning and Management Assistance ~------Director, Office of Environmental Quality____ _ Director, Office of Evaluation ______Director, Office of Policy Planning______Director, Urban Program Coordination Staff__ _ General Manager, Community Development Corpo- ration ------Executive Assistant to the General Manager___ _ New Communities Administrator------­ Assistant Administrator, Office of Policy Devel- opment ------Assistant Administrator, Office of Policy and Program Evaluation------

I SECRETARY-Continued SECRETARY-Continued Assistant Secretary for Administration ______General Manager, Community Development Corpo­ Deputy Assistant Secretary______ration-Continued New Communities Administrator-Continued Director, Office of Organization and Management Information ------Assistant Administrator, Office of Finance____ _ Director, Office of Personnel______Assistant Administrator, Office of Technical Director, Office of BudgeL------:------Analysis ------.,------Director, Office of Finance and Accounting ______Director, Office of General Services______Assistant Administrator, Office of Project Imple- Director, Office of Procurement and Contracts __ _ mentation ------Director, Office of ADP Systems DevelopmenL--- Assistant Secretary for Housing Production and Mort­ gage Credit and Federal Housing Commissioner_ Deputy Assistant Secretary______Director, Office of ADP Operations------Executive Assistant Commissioner______Federal Insurance Administrator------~------­ Assistant Administrator for :erogram Development__ Director, Office of Policy and Program Analysis Assistant Administrator for Flood Insurance ______and DcvelopmenL------Assistant Administrator for Crime Insurance ______Director, Office of Administration ______Assistant Administrator for Urban Property Insur- Director, Office of Underwriting Standards---­ Director, Office of Field Support------Chiefance Actuary ------______President, Government National Mortgage Associa- Interstate Land Sales Administrator ______tion ------Deputy Administrator ______Executive Vice President______.:_ Assistant Deputy Administrator ______Vice PresidcnL------Director, Division of Examination------~----­ Secretary and Treasurer______Director, Division of Policy Development and Controller ------Control ------Assistant Secretary for Housing Management______Director, Land Sales Enforcement______Deputy Assistant Secretary ______Inspector GeneraL------Director, Project Financing Staff ______Assistant Inspector General for Audit______: ______Director, Emergency Preparedness Staff______Assistant Inspector General for Investigation ______Director, Office of Management Information Assistant Inspector General for Security______and Field Support__.:______Assistant Inspector General for Washington Oper- Director, Office of Housing Programs ______ations and Special Projects______Director, Office of Loan Management------Assistant Inspector General for Administration ____ _ Director, Office of Property Disposition ______Federal Disaster Assistance Administrator______Director, Office of Administrative

2 3 I \

I The Department of Housing and Urban Development was established by the Depa:iment of Housing and Urban Development Act of September 9, 1965, - II d \ effective November 9, 1965 (79 Stat. 667; 42 U.S.C. 3531-3537). - 1 11 'I Office of the Secretary ~ § SECRETARY ~ecretary on all matters relating to civil ~1ghts and equal opportunity in hous­ The Department is administered under .... ing and .related facilities, employment, the supervision and direction of the and business opportunity. 1;1 Secretary, who responsible for the is The responsibilities assigned to the administration of all programs, func­ Iii I tions, and authorities of the Depart­ DeJ?art~ent concerr_iir_ig equal oppor­ - tunity include adm1mstering the fair ment; for the general regulation of the Federal National Mortgage Associa­ h<;>u~in~ program authorized by the 5 I I Civil Rights Act of 1968; assuring that tion; and for advising the President on ... the programs and activities of the De­ Federal policy, programs, and activi­ mI partment operate affirmatively to fur­ ties relating to housing and urban de­ I' II ther !he _goals of equal opportunity; velopment. The Secretary also serves c~rd1i;iatmg planning, monitoring, and i as Chairman of the Board of Directors i reviewing programs to increase train­ .- of the Community Development Cor­ I .... IP ! ing~ ~mployment, .and economic oppor­ II §111 poration. tumt1es for lower-mcome and minority­ - §I I I - I~ UNDER. SECRETARY group project area residents in HUD­ - ~ The Under Secretary assists the Secre­ assis~ed .activities; ~d developing and It momtormg the rmplementation of '-- tary in the discharge of his duties and I ... responsibilities, and serves as Acting standards, procedures, and guidelines I 11 - Secretary in the absence of the Secre­ under Executive Order 11478 of Au­ I tary. gust 8, 1969, providing for equality of employment opportunity within the 111 - - 11 FIELD OPERATIONS Department. I - I !1 i The Deputy Under Secretary for Field I . I - 51,~ LEGISLATIVE AFFAIRS I I '-- Operations is responsible for oversee­ I ... I ing general headquarters-field relation­ The Assistant Secretary for Legislative ships, for assuring coordination and Affairs is the principal adviser to the i consistency of the Department's field Secretary with respect to legislative af­ I I activities and for assisting in the con­ fairs and is responsible for providing Ill 11 ... if~ •di u 11 tinual improvement of field office oper­ services to the Congress for all pro­ I I! ations. grams and activities of the Depart­ I i ment. ... Ith STAFF ADMINISTRATION The Secretary is assisted in performing I ~· the functions of the Department by The Assistant Secretary for Adminis­ I tration is the principal adviser to the - Assistant Secretaries and other officials in program and functional areas. Secretary and other principal staff of I The Office of the Secretary also con­ the Department and the chief officer tains staff offices having ·Department­ of the Department on administrative wide responsibility in specialized func­ management. His responsibilities are tional areas such as public affairs, labor carried out through the following eight - relations, and international affairs. offices, each headed by a Director: ii Organization and Management Infor­ EQUAL OPPORTUNITY mation, Personnel, Budget, Finance The Assistant Secretary for Equal Op­ and Accounting, General Services, portunity is the principal adviser to the Procurement and Contracts, ADP

4 5 sponsible for the following programs cities with populations m excess of Systems Development, and ADP Op­ 1 Headquarters. He also supervises staff \ and activities: 50,000. erations. assigned to the Regional and Area COMPREHENSIVE PLANNING HISTORIC PRESERVATION GENERAL COUNSEL Counsels' Offices on all matters. of \, ASSISTANCE The General Counsel is the chief law legal significance and import. HUD is responsible for assuring de­ HUD assists State and local govern­ partmental compliance with the Na­ officer of the Department and is the INSPECTOR GENERAL legal adviser to the Secretary and other ments and areawide organizations in tional Historic Preservation Act of 1966 principal staff of the Department. He The Inspector General is the Depart­ dealing with community development and Executive Order 11593 of May 13 provides legal opinions, advice, and ment's focal point for independent re­ and growth for urban and rural areas· 1971, which require that federally as: services with respect to all programs view of integrity of operations; the provides grant assistance to State and sisted under~aki~gs do not adversely af­ and activities of the Department, and central authority concerned with the local governments and areawide multi­ fect properties listed on the National he provides counsel and assistance in quality, coverage, and coordination of jurisdictional organizations to encour­ Register of Historic Places, and that the development of the Department's the audit, investigation, and security age State, local, and areawide offi­ HUD programs are administered so as programs and policies. The General services of the Department; and the cials to improve executive planning to protect and enhance our historical Counsel supervises all staff assigned to principal adviser to the Secretary on decisionmaking, and management ca~ and architectural resources. The De­ the Office of the General Counsel at these matters. p~bility; encourages community plan­ partment holds membership on the Ad­ mng and management as a continuous visory Council on Historic Preserva­ process. tion. Comprehensive planning assistance COMMUNITY DEVELOPMENT under this program means a continuing TRAINING PROGRAMS Program Areas process whereby State and local gov­ e?Jm.ents and areawide planning orga­ HUD may make matching grants to States to assist in programs to provide New Communities community.. This Federal guarantee mzatlons formulate and coordinate community strategies and management special training in skills needed for eco­ The Community Development Corpo­ has the result of allowing developers to nomic and efficient community devel­ obtain financing on more favorable decisions. It spans the broad range of ration (CDC) was established within ~ovemmental activities, services, and opment to persons employed by a gov­ the Department of Housing and Urban terms. ernmental or public body or a private Eligible for this assistance are public mvestments for which assisted govern­ Development to administer the New ments are responsible. nonprofit organization which has re­ Communities program. The CDC has land development agencies, if income sponsibility for housing and community from the obligations guaranteed is not Grants may be made to States for a five-man Board of Directors, includ­ statewide planning and assistance to ?evelopment programs; and support­ ing the Secretary of Housing and Ur­ exempt from Federal taxation and mg State and local research needed in private developers. For public' land c_ities with. less ~han 50,000 popula­ ban Development, who is Chairman, tions; Indian tnbes; counties of all connection with housing programs and and a General Manager, who is the development agencies the guarantee needs and other similar community may cover up to 100 percent of the sizes; metropolitan areawide planning Corporation's chief executive officer. organizations; nonmetropolitan area­ development problems. The Board sets broad policy and makes value of the real property acquired for wide planning organizations (including URBAN STUDIES FELLOWSHIP final decisions at critical points in the the new community, plus 100 percent Economic Development Districts and PROGRAM New Communities process, subject to of development cost. For private de­ the direction and supervision of the velopers the guarantee covers up to 80 Local Development Districts) ; and HUD provides fellowships to candi­

Secretary. percent of the value of the real prop­ 1 dates for graduate training in accred­ No new commitments have been made ited universities in such fields as urban The New Communities Administra­ erty before development and .90 per­ by the Department under the following tion (NCA) performs policy, staff, and cent of the development cost. A single programs since January 5, 1973: Open economics, housing and urban renewal, operational roles in support of the project may be guaranteed up to $50 Space Land, Water and Sewer Facilities, community organization, urban sociol­ and Public Facility Loans. Community Development Corpora-· million. ogy, urban geography, urban engineer­ No new commitments have been made by ing and systems design, urban trans­ tion. The NCA is headed by an Ad­ There are other provisions of the the Department for the following programs portation, and new communities. ministrator who is responsible to the Housing and Urban Development Act since June 30, 1973: Neighborhood Facili­ General Manager of the CDC, and of 1970 (84 Stat. 1770) which provide ties, Community Development Training, STATE AND LOCAL through it to the Secretary. The NCA for additional financial assistance but and Urban Fellowship Program. MANAGEMENT ASSISTAN.CE implements decisions that the CDC No new commitments are being contem­ Board has taken. only the guarantee portion is available plated for the following programs after This program are~ includes technical Under the New Communities pro­ at this time. June 30, 1974: Model Cities, Urban Re­ assistance to States; areawide agencies, newal, and Rehabilitation Loans and and communities in planning and man­ gram, the Community Development Community Planning and Corporation guarantees the obliga­ Grants. agement through such activities as: aid Development tions, bonds or debentures, that a de­ There is legislation pending before Con­ to City Demonstration Agencies (Model Cities) to assist such agencies veloper issues to raise the capital to The Assistant Secretary for Commu­ . gress which will replace the programs that have been or will be discontinued. acquire and develop land for a new nity Planning and Development is re- in planning, developing, and adminis-

6 7 tering comprehensive city demonstra­ for review to an areawide agency desig­ on the built environment. HUD de­ commercial properties, not including tion programs; assisting State and local nated to perform the metropolitan or velops and promulgates urban design servicing and disposition. Individuals governments, as well as IndiaI? tril;>al regional planning for the area in which criteria which include among the bases who qualify may receive loans and bodies, in comprehensive plannmg, m­ the assistance is to be used, and recom­ for planning and decisionmaking, the grants for rehabilitation purposes. cluding transportation planning; en­ mendations shall be reviewed by HUD integrated consideration of the natural couragement of planning and assist­ for the purpose of assisting in deter­ and social sciences, as well as environ­ OPEN SPACE LAND AND ance on a unified regional, district, or mining whether the application is in mental design arts. The Department RELATED PROGRAMS metropolitan basis; and managem~nt accordance with the provisions of Fed­ works closely with the Department of Grants are available for the acquisition assistance to States and State agencies eral law which govern the making of Transportation in formulating plan­ and development of open space land to aid in comprehensive coordinated the loans or grants. ning approaches to joint development, and urban beautification and improve­ planning and planning related activi­ RELOCATION in recognition of man-environment ment. ties. interrelationships. HUD develops and administers reloca­ COMMUNITY FACILITIES WORKABLE PROGRAM FOR tion policies and requirements for the SURPLUS LAND FOR COMMUNITY Grants are provided for basic water and COMMUNITY IMPROVEMENT fair and equitable treatment of per­ DEVELOPMENT PROGRAM sewer facilities and neighborhood fa­ Under this program a community de­ sons who are d~splaced or have their Surplus Federal real property may be: cilities and loans for public facilities. signs its own plan of action for disci­ property taken as a result of activities sold for fair market value to a local plining its development and using ap­ planned or carried out by local agencies public agency which certifies that such Housing Production and propriate private and public resources with HUD assistance. land is within the area of an urban re­ Mortgage Credit 1 to eliminate and prevent slums and ENVIRONMENT newal project being planned by it; or blight, addressing locally determined sold or leased to public or private de­ The Assistant Secretary for Housing Enhancement of environmental quality Production and Mortgage Credit, who needs, goals, and objectives as well as and environmental planning activities velopers at its fair value for use in pro­ federally determined requirements. viding housing for families and indi­ is also the Federal Housing Commis­ are conducted by the Department, in sioner, administers the programs and Essential elements of a Workable implementation of the National En­ viduals of low or moderate . income, Program are the adoption of modern including necessary related public, functions of the Department which vironmental Policy Act of 1969. These assist in the production and financing codes and their enforcement, compre­ activities include development and commercial, and industrial facilities. hensive planning and programing, pro­ of housing and in the conservation and implementation of HUD environmen­ MODEL CITlES rehabilitation of the housing stock. visions for housing and relocation, and tal policies and procedures, and the provisions for citizen involvement, as Funding and technical assistance is pro­ These programs include the insur­ development of environmental assess­ ance, under the National Housing Act, well as provisions for equal opportunity ment criteria, coordination with other vided to a selected number of cities in housing. Recertification is based on throughout the country for a compre­ of mortgages and loans made by pri­ Federal departments and agencies and vate lending institutions for the pur­ review of progress submitted by the with the Council on Environmental hensive program to deal with social, community to HUD every 2 years. The economic, and physical problems in chase, construction, rehabilitation, re­ Quality. Other environmental func­ pair, and improvement of single-family localities' Workable Program must be tions of the Department encompass the slum and blighted areas. The Model (re) certified by HUD before the com­ development of environmental stand­ Cities program involves concentration and multifamily housing, the low-rent munity can become eligible for Federal ards, policies and procedures for energy and coordination of Federal; State, and public housing program, and the home­ renewal assistance, for HUD-FHA conservation, codes modernization local public and private resources. Resi­ ownership assistance, interest-reduc­ mortgage insurance for housing to be and administration, and strategies for dents of designated Model Cities areas tion, rent supplernent, and college built or rehabilitated in renewal areas, the amelioration of environmental as well as other interested citizens are housing programs. With respect to and for rehabilitation loans and grants problems such as natural hazards, air involved in the planning and imple­ these programs, the functions assigned in specified areas. and noise pollution. Emphasis is placed mentation of local Model Cities to the Assistant Secretary for Housing programs. PROJECT REVIEW on environmental and land use plan­ Production and Mortgage Credit. are ning and environmental management URBAN RENEWAL those required from preapplication Under title II of the Demonstration practices. The Department has a lead Cities and Metropolitan Development Loans and grants are provided for slum through construction completion and Act of 1966, applications for Federal responsibility for working with national clearance and urban renewal including the execution and closing of the con- technical and professional organiza­ neighborhood development, interim loans or grants to assist in carrying out 1 open space land projects or for the tions to improve State and local code assistance for blighted areas, concen­ The following programs were tempo­ administration. rarily suspended, effective January 5, planning or construction of hospitals, trated code enforcement, demolition 1973: Assisted Housing (Rent Supple­ airports, libraries, water supply and URBAN DESIGN projects, general neighborhood renewal ments, sections 235 and 236, and Public plans and feasibility surveys. Housing), and Nonprofit Sponsor Assist­ distribution facilities, law enforcement The National Environmental Policy ance. facilities, and water development and Act directs the utilization of a sytema­ REHABILITA,TION LOANS AND GRANTS No new commitments have been made land conservation projects within any tic, interdisciplinary approach to by the Department under the following This is a program of loans and grants program since January 5, 1973: College metropolitan area shall be submitted environment, with particular emphasis for rehabilitation of residential and Housing.

8 9 tract or mortgage or other credit fi­ ing. In addition, interest-free loans are by trusts or pools composed of mort­ developments, trends, and problems nancing instrument, as well as actions authorized to cover up to 80 percent of gages insured by HUD or guaranteed relating to national housing and com­ which are a direct extension of the the preconstrurtion costs incurred by by the Veterans Administration. munity development goals. The Assist­ construction and production phase nonprofit sponsors in planning a fed­ ant Secretary is also the principal which may occur after final endorse­ erally assisted, low- and moderate­ Housing Management adviser on scientific and technological ment. inrome housing project. The Assistant Secretary for Housing matters of concern to the Department. APPLICATIONS The low-rent public housing pro­ Management directs the administra­ The Office of the Assistant Secretary gram, authorized by the United States tion of departmental programs and ac­ for Policy Development and Research All applicants who wish to participate Housing Act of 1937, provides Federal conducts action research (applied re­ in a mortgage insurance program must tivities in the following areas: loans and annual contributions to assist Provision of assistance is given the search including experiments, demon­ submit their applications through the local housing authorities in providing strations, and pilot implementations) mortgage lender who i.s financing the local housing authorities in manage­ low-rent housing by construction, by ment and modernization of low-rent to provide a better understanding; im­ home or project. However, in the case rehabilitation of existing structures, by proved methods, services, and facilities; of multifamily projects, the applicants public housing projects including sup­ purchase from private builders or de­ port of resident and community serv­ improved Federal programs; and solu­ submit to the Department a request for velopei:s (the Turnkey method), and tions to housing and community prob­ feasibility determination prior to for­ ices in these projects, and the necessary through leasing from private owners. special family and other operating lems of our grov..jng population. mal application for a firm commitment. Special provisions allow for purchase Operation Breakthrough has as its The Department then determines if the subsidies. of such homing by low-income families. HUD-insured and Government-held primary objective breaking through applicant and the project meet certain . The College Housing Program pro­ the barriers that have prevented the eligihility criteria, and a study is made mortgages are managed and serviced vides loans and debt service grants to for all mortgage insurance programs use of improved methods and design, to determine the feasibility of the proj­ colleges and cligihlc hospitals to finance production, land use, marketing tech­ ect. The applicant then suhmits, under the National Housing Act, in­ the construction, rehabilitation, or pur­ cluding nursing homes, intermediate nology, and management in housing. through the mortgage lender, a formal chase of housing and related facilities. To meet this objective HUD has en­ application. care facilities, mobile homes and mo­ Housing for the elderly is provided by bile home courts, hospitals, group prac­ tered into a cooperative effort with INSURANCE the Rental Housing Assistance Pro­ tice facilities, and land development. local and State governments, industry, labor, financial institutions, and com­ Mortgages and loans are insured gram, the Rent Supplement Program, Management and administration of under the terms of the National Hous­ and the Low-Rent Public Housing assistance is offered for contracts for munity groups to improve the entire Program. housing process. ing Act for the purchase of single­ interest reduction payments and rent In MORTGAGE CREDIT supplements, homeownership for low­ meeting the goal of providing family housing, private residences, housing to meet national needs, re­ rental housing, cooperative housing, and middle-income families, operation, The Assistant Secretary for Housing search and technology programs in­ condominiums, and mobile homes. Production and Mortgage Credit also and forebearance agreements and as­ Mortgage insurance also is provided signments of mortgages. clude projects in the areas of improved directs the administration of the Gov­ operation and management of the for housing for the elderly, nursing ernment National Mortgage Associa­ Loans are serviced and managed for homes and intermediate care facilities, housing assisted by Department lending existing stock of housing, assisting fam­ tion ( G NMA) . Under the direct lead­ ilies to obtain housing through housing nonprofit hospitals, and group prac­ and grant programs; real and related ership of a president, the Association allowance subsidies, assembling hous­ tice medical facilities. Special programs carries out the following programs of propertv conveyed to or in the custody are provided for loan and mortgage in­ of the Secretary is managed, rehabili­ ing statistics and economics informa­ the Denartment in accordance with tion, encouraging new and improved surance for land development, mobile the gen'eral policies of the Secretary tated, rented, and disposed. building technology, and fair housing home parks, experimental housing, and tide III of the National Housing Direction is given to resident and housing in urban renewal areas, armed Act: the provision of special assistance homeownership counseling to low- and and equal opportunity practices. In services housing, and single-family in the financing of eligible-types of middle-income families; private mar­ addition, experiments to test the com­ housing for home-ownership subsidized federally underwritten mortgages; the ket finandn!r through the sale of notes ponents of the program for preventing by interest assistance payments and mortgaise backed security program; and bonds; local financing for urban the spread of abandonment and neigh­ multifamily housing subsidized through the management and liquidation of the renewal; defense planning, disaster re­ borhood decay are being developed. interest assistance payments and rent portfolio of mortgages held by GNMA; lief, and economic stabilization activi­ Further, research related to practical supplements. the management of the Government ties; and liquidating programs. demonstrations of waste disposal sys­ Mortgage Liquidation Trust, Small tems, energy systems including the LOANS AND ASSISTANCE Business Obligations Trust, Federal Policy Development and Research utilization of waste heat, noise abate­ The Department is authorized to pro­ Assets Liquidation Trust, and Federal The Assistant Secretary for Policy De­ ment methods, advanced communica­ vide, or contract with public or private Assets Financing Trust; and the guar­ velopment and Research performs tion systems, utility installation and organizations to provide advice and anty of timely payments of principal · functions with respect to program for­ geological problems in community de­ technical assistance to nonprofit spon­ and interest on such trust certificates mulation and evaluation and makes velopment are supported. sors of low- and moderate-income hous- or other securities as shall be backed comprehensive studies and analyses of The Municipal Information Systems

10 11 protection, particularly on property purchase the Federal policy through program initiated in 1970, as an aid Federal Insurance located in areas possibly subject to civil any licensed insurance agent or broker. in improving and modernizing the in­ The Administrator of the Federal In­ disturbances. Federal reinsurance is formation gathering capabilities of available for companies participating Interstate Land Sales Registration municipalities to assist in their man­ surance Administration (FIA) is the principal adviser to the Secretary on in Fair Access to Insurance Require­ The Interstate Land Sales Adminis­ agement and decisionma:King proc­ ments (FAIR) Plans under the super­ trator exercises the Department's re­ esses, is managed within the Office of insurance matters, particularly on those administered by the FIA. In all vision of the State insurance authority. sponsibilities under the Interstate Land the Assistant Secretary for Policy De­ These companies agree to provide cov­ Sales Full Disclosure Act. The Admin­ velopment and Research. insurance programs, the Administra­ tion utilizes the cooperation of other erage based on the insurability of the istrator heads the Office of Interstate Federal Disaster Assistance Federal agencies, State and local gov­ property regardless of location. Prop­ Land Sales Registration which admin­ ernments, and the private insurance erty owners in FAIR Plan jurisdictions isters and enforces registration and dis­ The Federal Disaster Assistance Ad­ industry. The FIA conducts studies who cannot obtain insurance coverage closure requirements which apply to ministration (FDAA) Administrator is and makes recommendations of alter­ in the private market are referred to developers who sell land through the responsible for direction, management, native programs of insurance and the FAIR Plan headquarters, the prop­ use of any means of interstate com­ and coordination of the Federal disas­ financial assistance in meeting natu­ erty is inspected and the rate deter# merce or the mails. Pursuant to the ter assistance program. The Adminis­ ral and other disasters and similar mined, and the policy is issued. provisions of the act and Department tration provides direction and overall occurrences. regulations, developers of all non­ policy coordination for disaster pro­ CRIME INSURANCE exempt subdivisions containing 50 or FLOOD INSURANCE gram activities delegated to the Secre­ The Federal Crime Insurance Pro­ more lots must file a Statement of Rec­ tary by the President. This involves The National Flood Insurance Pro­ gram is designed to enable business­ ord with the Office of Interstate Land administration of the President's Dis­ gram is designed to enable persons to men and residents of homes and apart­ Sales Registration and furnish each aster Relief Fund; management of purchase insurance against losses re­ purchaser with a printed Property Re­ programs concerned with disaqter re­ sulting from physical damage to or loss ments to purchase crime insurance in port in advance of the time that they search, preparedness, readiness evalua­ of real or personal property arising States where crime insurance is difficult sign the sales contract. Developers who tion, disaster relief and recovery; and from floods or mudslides occurring in to obtain or excessively costly. The Ad­ do not comply with the statutory and coordination of other agency disaster the United States. Communities hav­ ministrator reviews the market situa­ regulatory requirements may be sub­ assistance activities. The Administrator ing flood or mudslide hazards put into tion in the several States to determine ject to administrative proceedings, civil directs Regional and field office disas­ effect land use and control measures where the Federal program is needed. proceedings to enjoin the arts or prac­ ter assistance activities through the Re­ meeting FIA standards and apply for Citizens of the States so designated may tices, and criminal prosecution. gional Directors for Federal Disaster eligibility to the Administrator. After Assistance, as listed in the table fol­ the community has been designated as lowing: eligible, insurance policies may be pur­ Field Structure chased from any licensed insurance Regional Offices- agent or broker. The field operations of the Department his region, the overall management of Federal Disaster Assistance The Flood Disaster Protection Act are carried out through a series of re­ the regional office, and the supervision Administration of 1973 requires that Federal assistance gional, area, and insuring offices. and direction of regional office staff, (including flood related disaster assist­ The regional offices of the Depart­ and of the area and insuring offices in ance and mortgage loans from fed­ ment have boundaries and headquar­ his region. ters locations prescribed by the Secre­ Area and insuring offices of the De­ Re1lon Address erally-supervised lending institutions tary. Each regional office is headed by partment are operational in the loca­ !______and FHA or VA insured loans) for JFK Federal Bldg., a Regional Administrator, who is re­ tions listed below. For information con­ lloslon, Mass. 02203. acquisition and construction purposes 2____ -- sponsible to the Secretary and the cerning the detailed jlirisdiction of an 26 Federal Plaza, New in areas of special flood hazard in par­ York, N.Y.10007. Under Secretary for the execution of office, the indicated regional office 3 ______6th and Walnut sis., ticipating communities be protected by Philadelphia, Pa. 191113. the Department's programs assigned should be consulted. 4 ______1375 Peachtree St. NE., flood insurance. After June 30, 1975, Atlanta, Ga. 30309. flood-prone communities must estab­ 5______- 300S. Wacker Dr., Chicago, Ill. 60606. lish flood insurance program eligibility 6 ______llOOCommerce St., or be denied such federally-related as­ 7 ______Dallas, Tex. 75202. 911 Walnut St., sistance or projects within special flood Kansas City, Mo.64106. hazard areas. 8 •••••.. 1860 Lincoln St., Denver, Colo. 80203. RIOT REINSURANCE 9 ____ --- 120 Montgomery Sl, San Francisco, Calif. 94104. The Riot Reinsurance Program is de­ 10.. •... 1319 2d Ave.,Seltlle, signed to assist property owners in ur­ Wash.98101. ban areas to obtain essential insurance

13 12 FIELD OFFICE JURISDICTIONS OF HUD REGION Ill REGION IV

Regional Administrator Regional Administrator Curtis Building Room 211, Pershing Point Plaza 6th and Walnut Streets 1371 Pllachtree Street, N.E. Ph1ladelph1a, Pennsylvania 19106 Atlanta, Georgia 30309 REGION I REGION II Tel. (-215) 597-2560 Tel. (404) 526-5585

Regional Administrator Regional Administrator AREA OFFICES AREA OFFICES Rm. 800, John F. Kennedy 26 Federal Plaza, Room 3541 Federal Building New York, New York 10007 Boston, Massachusetts 02203 Tel. (212) 264-8068 DISTRICT OF COLUMBIA, ALABAMA, BIRMINGHAM 35233 Tel. 1617) 223-4066 WASHINGTON 20009 Daniel Building Universal North Building 15 South 20th Street 1875 Connecticut Ave. N.W. Tel. (205) 325-3264 AREA OFFICES AREA OFFICES Tel. (202) 3824855 FLORIDA. JACKSONVILLE 32204 MARYLAND, BALTIMORE 21201 Peninsular Plaza CONNECTICUT, HARTFORD 06105 Two Hopkins Plaza 661 Riverside Avenue 999 Asylum Avenue NEW JERSEY, CAMDEN 08103 The Parkade Building Mercantile Bank and Trust Building Tel. (203) 244-3638 Tel. (904) 791-2626 519 Federal Street Tel. (301) 962-2121 Tel. (609) 963-2541 GEORGIA, ATLANTA 30303 PENNSYLVANIA, PHILADELPHIA 19106 Peachtree Center Building MASSACHUSETTS, BOSTON 02114 Curtis Building Bulfinch Building NEW JERSEY, NEWARK 07102 230 Peachtree Street, N.W. Gateway 1 Building 625 Walnut Street Tel. (404) 526-4576 15 New Chardon Street Tel. (215) 597-2665 Tel. (617) 223-4111 Raymond Plaza Tel. (201) 645·3010 KENTUCKY, LOUISVILLE 40201 PENNSYLVANIA, PITTSBURGH 15212 Children's Hospital Foundation Bldg. NEW YORK, BUFFALO 14202 Two Allegheny Center 601 South Floyd Street NEW HAMPSHIRE, MANCHESTER 03101 Tel. (412) 644-2802 Davison Building Grant Building Post Office Box 1044 560 Main Street Tel. (502) 582-5251 1230 Elm Street VIRGINIA, RICHMOND 23219 Tel. (603) 669-7681 Tel. (716) 842-3510 701 East Franklin Street MISSISSIPPI. JACKSON 39213 NEW YORK, NEW YORK 10019 Tel. (804) 782-2721 101-C Third Floor Jackson Mall INSURING OFFICES 666 Fifth Avenue 300 Woodrow Wilson Avenue, W. Tel. 1212) 974-6800 Tel. (601) 366-2634 INSURING OFFICES MAINE, BANGOR 04401 Federal Building and Post Office NORTH CAROLINA, 202 Harlow Street COMMONWEALTH AREA OFFICE GREENSBORO 27408 DELAWARE, WILMINGTON 19801 Post Office Box 1357 2309 West Cone Boulevard Farmers Bank Building Tel. (207) 942-8271 Northwest Plaza PUERTO RICO, SAN JUAN 00936 919 Market Street, 14th Floor Tel. (9191 275-9111 Tel. (3021 571-6330 RHODE ISLAND, PROVIDENCE 02903 Post Office Box 3869 GPO 330 Post Office Annex 255 Ponce de Leon Avenue SOUTH CAROLINA. COLUMBIA 29202 25330 1801 Main Street Tel. (401) 528-4351 Hato Rey, Puerto Rico WEST VIRGINIA, CHARLESTON Tel. (809) 765-0404 New Federal Building Jefferson Square Tel. (803) 765-5591 VERMONT, BURLINGTON 05401 500 Quarrier Street Federal Building Post Office Box 2948 Elmwood Avenue Tel. (3041 343-6181 TENNESSEE, KNOXVILLE 37919 INSURING OFFICES One Northshore Building Post Office Box 989 1111 Northshore Drive Tel. (802) 862-6501 Tel. (6151 584-8527 NEW YORK, ALBANY 12206 Westgate North 30 Russell Road Tel. (5181 472·3567

14 15 (Cont.) MICHIGAN, DETROIT 48226 INSURING OFFICES REGION IV 5th Floor, First National Building REGION VI 660 Woodward Avenue Tel. (3131 226-7900 LOUISIANA, SHREVEPORT 71120 INSURING OFFICES Regional Administrator New Federal Building MINNESOTA, MINNEAPOLIS-ST. PAUL Room 14C2, Earle Cabell Federal Building 500 Fannin, 6th Floor Griggs-Midway Building U.S. Courthouse Tel. (3181 226-5385 FLORIDA, CORAL GABLES 33134 1821 University Avenue 1100 Commerce Street 3001 Ponce de Leon Boulevard St. Paul, Minnesota 55104 Dallas, Texas 75202 NEW MEXICO, ALBUQUERQUE 87110 Tel. (305) 445-2561 Tel. (612) 725-4701 Tel. (2141 749-7401 625 Truman Street, N.E. Tel. (505) 76q-3251 FLORIDA, TAMPA 33679 OHIO, COLUMBUS 43215 4224-28 Henderson Boulevard AREA OFFICES 60 East Main Street OKLAHOMA, TULSA 74152 Post Office Box 18165 Tel. (614) 469-7345 1708 Utica Square Tel. 1813) 228-2501 ARKANSAS, LITTLE ROCK 72201 Post Office Box 4054 WISCONSIN, MILWAUKEE 53203 Room 1490, One Union National Plaza Tel. 19181 581-7435 TENNESSEE, MEMPHIS 38103 744 North 4th Street Tel .• (501) 378-5401 28th Floor, 100 North Mam Street Tel. (414) 224-3221 Tel. 1901) 534-3141 LOUISIANA, NEW ORLEANS 70113 REGION VI (Cont.) TENNESSEE, NASHVILLE 37203 Plaza Tower U.S. Courthouse INSURING OFFICES 1001 Howard Avenue Federal Building Annex Tel. (5041 527-2063 TEXAS, FORT WORTH 76102 801 Broadway 819 Taylor Street Tel. (615) 749-5521 ILLINOIS, SPRINGFIELD 62704 OKLAHOMA, OKLAHOMA CITY 73102 Room 13A01 Federal Building Lincoln Tower Plaza 301 North Hudson Street Tel. (817) 334-3233 524 South Second Street, Room 600 Tel. (4051 231-4181 Tel. (217) 525-4414 TEXAS, HOUSTON 77046 REGION V TEXAS, DALLAS 75201 Two Greenway Plaza MICHIGAN, GRAND RAPIDS 49505 2001 Bryan Tower, 4th Floor East, Suite 200 Regional Administrator Northbrook Building Number 11 Tel. (214) 749-1601 Tel. 17131 226-4335 300 Soutn Wacker Drive 2922 Fuller Avenue, N.E. Tel. (616) 456-2225 TEXAS, SAN ANTONIO 78285 TEXAS, LUBBOCK 79408 Chicago, Illinois 60606 Courthouse and Federal Office Building Tel. 1312) 353-5680 Kallison Building OHIO, CINCINNATI 45202 410 South Main Avenue 1205 Texas Avenue Federal Office Building Post Office Box 9163 Post Office Box 1647 550 Main Street, Room 9009 Tel. (512) 225-5511 Tel. (806) 747-3711 AREA OFFICES Tel. (513) 684-2884

OHIO, CLEVELAND 44114 ILLINOIS, CHICAGO 60602 117 Rockwell Ave. 17 North Dearborn Street Tel. 1216) 522-4065 Tel. (312) 353-7660

INDIANA, INDIANAPOLIS 46205 Willowbrook 5 Building 4720 Kingsway Drive Tel. (317) 633-7188

, ('. REGION IX REGION X REGION VII REGION VIII Regional Administrator Regional Administrator 450 Golden Gate Avenue Arcade Plaza Building Regional Administrator Regional Administrator Post Office Box 36003 1321 Second Avenue Federal Building San Francisco, California 94102 Seattle, Washington 98101 Room 300 Federal Office Building Tel. 12061 442-5415 911 Walnut Street 1961 Stout Street Tel. (415) 556-4752 Kansas City, Missouri 64106 Denver, Colorado 80202. Tel. (816) 374-2661 Tel. (303) 837-4881 AREA OFFICES AREA OFFICES

AREA OFFICES INSURING OFFICES CALIFORNIA, LOS ANGELES 90057 OREGON, PORTLAND 97204 2500 Wilshire Boulevard 520 Southwest 6th Avenue COLORADO, DENVER 80202 Tel. (2131 688-5973 Tel. 15031 221-2558 4th Floor, Title Building KANSAS, KANSAS CITY 6610t WASHINGTON, SEATTLE 98101 Two Gateway Center 909 · 17th Street CALIFORNIA, SAN FRANCISCO 94111 Tel. 1303) 837-2441 Arcade Plaza Building 4th and State Streets 1 Embarcadero Center 1321 Second Avenue Tel. (816) 374-4355 Suite 1600 Tel. (206) 442-7456 MONTANA, HELENA 59601 Tel. 1415) 556-2238 MISSOURI, ST. LOUIS 63101 616 Helena Avenue Tel. 1406) 442-3237 210 North 12th Street INSURING OFFICES Tel. (314) 622-4760 INSURING OFFICES NORTH DAKOTA, FARGO 58102 NEBRASKA, OMAHA 68106 Federal Building ALASKA, ANCHORAGE 99501 Univac Building 653 · 2nd Avenue N. ARIZONA, PHOENIX 85002 334 West 5th Avenue 7100 West Center Road Post Office Box 2483 244 West Osborn Road Tel. (9071 272-5561 Ext. 791 Tel. 1402) 221-9301 Tel. (701) 237-5136 Post Office Box 13468 Tel. (602) 261-4441 SOUTH DAKOTA, SIOUX FALLS 57102 IDAHO, BOISE 83707 INSURING OFFICES 119 Federal. Building U.S. Courthouse CALIFORNIA, SACRAMENTO 95809 331 Idaho Street 400 S. Phillips Avenue Post Office Box 32 801 I Street Tel. (208) 342-2711 Tel. 1605) 336-2980 Post Office Box 1978 IOWA, DES MOINES 50309 Tel. 1916) 449-3471 WASHINGTON, SPOKANE 99201 210 Walnut Street UTAH, SALT LAKE CITY 84111 West 920 Riverside Avenue Room 259 Federal Building 125 Sou th State Street CALIFORNIA, SAN DIEGO 92112 Tel. 15091 4564571 . Tel. 15151 284-4512 Post Office Box 11 009 110 West C Street Tel. (801) 524-5237 Post Office Box 2648 KANSAS, TOPEKA 66603 Tel. (714) 293-5310 700 Kansas Avenue WYOMING, CASPER 82601 Tel. (913) 234-8241 Federal Office Building CALIFORNIA, SANTA ANA 92701 100 East B Street 1440 East First Street Post Office Box 580 Tel. 1714) 836-2451 Tel. (307) 265-5550 HAWAII, HONOLULU 96813 1000 Bishop Street, 10th Floor Post Office Box 3377 Tel. 18081 54()-2136

NEVADA, RENO 89505 1050 Bible Way Post Office Bo'x 4700 Tel. (702) 784-5356

19 18 Government National Mortgage National Mortgage Association are car­ Sources of Information Association ried out through the five regional offi~ ces of the Federal National Mortgage Inquiries on the following subjects SPEAKERS AND FILMS The field activities of the Government Association as follows: should be directed to the nearest re­ Contact the Office of Public Affairs, gional or area office or to the specified Headquarters, Room 10132. Phone, Headquarters office, Housing and Regional Offices-Federal National Mortgage Association Urban Development Building, 451 202-755-6980. Seventh Street SW., Washington, D.C. EMPLOYMENT Ara 20410. Inquiries and applications should be Northeastern •••••••••••.• Connecticut, Delaware, District of Columbia, Maine, 5 Penn Center Plaza, Philadelphia PROGRAM INFORMATION CENTER Maryland, Massachusetts, New Hampshire, Naw Jersey, Pa. 19103. directed to the Headquarters Office of New York, Pennsylvania, Rhode Island, Verll!Ollt. Provides information regarding depart­ Personnel, or the nearest Regional Vir&inia, West Vlr&inia, Puerto Rico, Vir&in Islands. mental activities and {unctions, and Midwestern ••••.••••••••• Illinois, Indiana, Iowa, Michigan, Minnesota, Nllbrask1, 150 S. Wacker Dr., Chicaao, Ill. 60606. Office Personnel Division. North Dakota, Ohio, South Dakota, Wisconsin. publications and other literature to Southeastern .•••••••••••• Alabama, flodda, Georsia, Kentucky, Mississippi, North 100 Peachtree St. NW., Atlanta, Ga. Headquarters visitors. Persons in­ CONTRACTS Carolina, South Carolina, Ten-. 30303. terested in inspecting documents or Southwestern ••••••••••••• Arkansas, Colorado, Kansas, Louisiana, Mlnovri, New 2001 Bryan Tower, Dallas, Tex. 75201. Contact the Headquarters Office of Mexico, Oklahoma, Texas. records under the Freedom of Infor­ Western •••••••••••••••..• Alaska, AriZ011a, California, Guam, Hawaii, Idaho, Mon- 3435 Wilshire Blvd., I.Ill Anples, mation Act should contact the Pro­ Procurement and Contracts, or the tana, NtVlda, Oreson, Utah, Washlneton, Wyomina. Calif. 90010. gram Information Center, Room 1202. nearest"Regional Office General Serv­ Phone, 202-755-6420. ices Division. READING ROOM PROGRAM PARTICIPATION Resources and facilities of the HUD Persons interested in participating in library are available to the public in HUD programs should contact the ap­ Headquarters Room 8141 and the Re­ propriate Area or Insuring Office. gional and Area Office Libraries. Approved. PUBLICATIONS Written requests sent to Headquarters JAMES T. LYNN, should be directed to the Publication Secretary of Housing Service Center, Room B-258. and Urban Development.

20 21 GPO 885•532 HU D-232-4-AS I